Service tax on directors sitting fee
This query is : Resolved
11 October 2012
AS PER AMENDMENT WHETHER SERVICE TAX IS PAYABLE ON DIRECTOR SITTING FEES.
AS PER AMENDMENT WHETHER SERVICE TAX IS PAYABLE ON DIRECTOR SITTING FEES.
11 October 2012
sitting fees is not a part of remuneration of a director and service tax is liable on remuneration of director so sitting fees will not be charged to service tax.
11 October 2012
a new clause has been introduced 1(ba) to section 194J of tha ACT according to which sitting fees paid to directors are laible for TDS @ 10%
11 October 2012
okies my mistake pooja is right.
thanks for information pooja.
thanks for information pooja.
11 October 2012
sorry ..i read TDS instead of ST
from 07.08.12 onwards ST is payable on directors sitting fees and as it is covered by reverse charge mechanism,it is directly paid by the co. to the govt
from 07.08.12 onwards ST is payable on directors sitting fees and as it is covered by reverse charge mechanism,it is directly paid by the co. to the govt
11 October 2012
yes, service tax is applicable on director sitting fee under reverse charge.
11 October 2012
Any remuneration paid to a director who is not the employee of the co. service tax is applicable and this service tax is covered under reverse charge therefore co need to pay service tax on it.
11 October 2012
Yes payment of director sitting fee and other payments / reimbursement of expenses to non-executive directors would fall under reverse charge mechanism from 7th August, 12. Accordingly if the services are rendered prior to 7th August, 12 i.e. Board / Audit Committee meeting was prior to 7th Aug, 12 and bill has also been issued prior to this date then no reverse charge and it would be taxable in hands of director.... However normally taxable services of such director would be below Rs 10 lacs thus no tax....
It is important to note that director services has been brought to tax net only from 1st July, 12 after introduction of negative list...
For further details read my detailed article on said issue in the October, 12 issue of The Chartered Accountant, the journal of ICAi...
It is important to note that director services has been brought to tax net only from 1st July, 12 after introduction of negative list...
For further details read my detailed article on said issue in the October, 12 issue of The Chartered Accountant, the journal of ICAi...
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
Trending Online Classes
CAclubindia
