Kavya (CA Final Article) (32 Points)
18 August 2012In lines with the Notifications 45/2012 and 46/2012 dated 07/08/2012 Service tax liability shall arise on which portion of the payments received by the directors of a company ? Is the entire amount chargeable or any payment received as Salary by the director is exempt from Service Tax? Kindly clarify
Thanks in advance
RAJU
(LEARNER)
(1089 Points)
Replied 18 August 2012
Payment received in the capacity of an employee like MD, WTD is not liable.
John JRP
(Accounts)
(108 Points)
Replied 23 August 2012
Can anyone explain this in detail.
If there are only 2 directors in a company and there is no MD's, does this applicable?
RAJU
(LEARNER)
(1089 Points)
Replied 23 August 2012
Where Employer-Employee relationship exists, the same will not be exigible for service tax. Even if there are no MDs, but all the directors are whole time directors drawing salary, the company would not be liable for service tax..
CAclubindia
