Service tax on director remunetarion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 Hello Friends

As per service tax notification 30/2012 dt. 20.06.2012, Director are required to pay service tax on director remuneration. and notification no. 44/2012 a company is liable to pay service tax on Director remuneration under reverse charge.
my question is A private limited is paying Rs. 20000/- per month to its two directors each and 1% commission on sales.
so is company liable to pay service tax on director salary and commission ?

Please clarify.

Gursimar Singh

Gursimar Singh (Expert)
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17 September 2012 Sales commission forms part of Remuneration, so in my opinion ST is to be paid on both.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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17 September 2012 On Commission Its Compulsory to Pay Service Tax.

& On Remuneration, Just Check Whether Director is Executive or Non Executive.
If Executive Then No Need to Pay Service Tax.
In Case of Non Executive Service Tax Need to Pay.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 but as per my knowledge status of director as per notification 45/2012.

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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12 October 2012 tax applicable only for payments made to non-executive directors as executive directors are employees and employee services are out of tax net...