Dear All,
As We Know on Director Salary Service Tax Applicability There are Lots of Matters on Which Discussion is Must, Many Experts Have There Own Comments , Own Interpretation of Law, But Still Some Confusion remains till The Goverment Didnt Make it Clear.We have to Wait for Jurisdiction Judgement or Excise Department any Clarification.
In Notofication Dated 06/08/2012, If Employer Employee Relationship Exist, Then Service Tax is not Chargeable.
We Classified it as:
Executive Director,
Non Executive Director.
and Make it Clear That in MCA While filling Form32 director, If We Shown There Exective Then Service Tax is Not Chargeable, if shown Non Executive then Service Tax is Chargeable.
But Question Arises, Then Every One Continue to Show Director as Executive Director. & Will Not Pay service Tax.
But Employer Employee Relationship How to Confirm, I Mean Just If receiving Salary & deducting TDS u/s 192, is Sufficient to Proff That Employer Employee Relationship Exist.
I Think No.....
Even Independent Director Can be Termed as Executive Director, But he should not hold more than 2% of the block of Voting Shares.
What is Your Views.
Your Views are Invited.
CAclubindia
