Service tax on director remuneration..???

Page no : 2

Prasad (Sr. Manager) (617 Points)
Replied 14 August 2012

Yes Sitting Fees as already pointed out by Ganesh, attracts Service tax.

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hariharan (student) (38 Points)
Replied 23 August 2012

Dear CA Ganesh Karthik

Is it applicable to Private companie's Directors also?

Milan Agrawal (Chartered Accountant) (207 Points)
Replied 25 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 for the director, 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.

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 03 September 2012

Originally posted by : CA Ganesh Karthik
	Dear Nirmit, The Notification should not be read in isolation. It has to be read along with basic provisions of the Act. As per the Finance Act, the term service has been defined. As per the definition, Service excludes any service rendered by an employee to his employer in the course of his employment. Hence, every Whole Time Director / Managing Director / Executive Director, who is in the rolls of the company is not liable to service tax, as they are employees of the company. Hence, this notification is applicable only to non-executive directors. Hope your doubt is clarified.

agree

Arshad (Principal Consultantr ) (21 Points)
Replied 06 December 2012

Hi,

I am working with One HR Consulting Based out in Delhi, In Terms of Incentive Calculations and Payout my current employer First deduct Service Tax (12.36%) and then Deduct TDS (10%) as well. I Understood about the Deductions of TDS but How about service Tax, Am I liable to r that ? For Example– If we Raise a Invoice to Client with Service Tax and Client Pay us after Deducting TDS(10%), But when my employer is pay my commission then again they deduct Service Tax (12.36%) and then Deduct TDS (10%) and then Pay me, The Payment which they received from Client.

Kindly suggest me someone on this.

Regards

Arshad

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