In reverse charge mechanism service tax is to be paid on services provided by directors. In case of independant directors who just attend the board meetings and take sitting fees, do a company need to pay service tax on sitting fees ?
Does it require any approval at AGM of the company ?
Thanks
Hi
No need to pass shareholders resolution, Board meeting and Remuneration committee meeting resolution will be enough.
For Sitting Fee, go to the following link:
/articles/tds-on-remuneration-paid-to-directors-13422.asp#.UO-tTuSE2Jw
Service tax is to be paid on the sitting fee paid to the director.once it is to be paid as per requirment of law no prior sanction of AGM is required.
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