Service tax on director's remuneration

This query is : Resolved

Milan Agrawal (Querist)
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27 August 2012 Dear Sir,
Kindly clarify me in the following issue:

Service Tax on Director's Remuneration is applicable from 01.07.2012. However, reverse charge mechanism is applicable from 07.08.2012. Hence, for the period 01.07.2012 to 06.08.2012, Service Tax is to be paid by the Director himself for which he has to register himself with Service Tax Dept.

So, my query is, for registeration purpose, whether the limit of Rs. 10 Lacs is considered for annual remuneration or for the remuneration between 01.07.2012 to 06.08.2012?

Thanks & Regards.

Guest

Guest (Expert)

27 August 2012 DIRECTOR IS LIABLE FROM 01.07.2012 TO 06.08.12 AND THERE IS NO CLARIFICATION IN THIS REGARD BY AUTHORITIES SO WE HAVE TO FOLLOW NORMAL PROVISION OF LAW WHEREBY HAVE TO TURNOVER LIMIT.

FROM MY POINT OF VIEW IT WOULD BE USELESS TO GET S.TAX.NUM.OF DIRECTOR CAUSE FROM 07.08.12 COMPANY HAS TO PAY TAX AND FILE ST3 SO IF YOU GET THEN ALSO YOU HAVE TO CANCEL AFTER THAT