07 September 2012
1. Is service Tax applicable on Directors Remuneration ....? 2. If yes then at what rate ? & from which date it is applicable ? 3. who is liable to pay service tax.. ? & whether Company or Director...?
07 September 2012
Following is the applicability of service tax: 1) Sitting fee: ST under reverse charge. 2) Employee director receiving salary: No service tax. 3) Sitting fee and commission: Both liable under reverse charge.
If Director is Non Exective Stated While Filling Form 32, Then Only Service Tax is Applicable on Remuneration Paid.
Service Tax is Applicable From 01/07/2012. From 07/08/2012, Under Reverse Charge Mechanism Applicable.
and From Period 01/07/2012 to 07/08/2012, Director Need to Obtain Service Tax Registration Number, & Pay Service Tax to Credit of Central Govt. & Accordingly File ST Return.
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