Please Help: Service Tax Liability under reverse charge for Director remuneration
Posted Date : 02-Sep-2012 , 01:45:10 pm | Posted By Aashish Kumar Jain
Please help me on this issue
If two directors of a Pvt. Ltd. company are taking remuneration, then as per amendment in the service tax law under reverse charge, the company is liable to pay service tax.
If they are getting remuneration each of Rs. 4Lacs (say), then directors are getting remuneration less than Rs.10Lacs, which is below the threshold limit then what happen
1. Is a company still liable to pay service tax on the remuneration paid to directors?
2.Or as technically and fundamentally directors are itself not liable to pay service tax, hence there is no tax liability on the company under reverse charge basis.
Please tell me…I am waiting for ur response
Thanks in Advance
If two directors of a Pvt. Ltd. company are taking remuneration, then as per amendment in the service tax law under reverse charge, the company is liable to pay service tax.
If they are getting remuneration each of Rs. 4Lacs (say), then directors are getting remuneration less than Rs.10Lacs, which is below the threshold limit then what happen
1. Is a company still liable to pay service tax on the remuneration paid to directors?
2.Or as technically and fundamentally directors are itself not liable to pay service tax, hence there is no tax liability on the company under reverse charge basis.
Please tell me…I am waiting for ur response
Thanks in Advance
Category : Service Tax | Answers : 1 | Comments : 2 | Hits : 737
Answers
Answer By: CA Satuti Mahajan
The service tax is not applicable on remuneration.
Comments
SINNY
04-Sep-2012 , 03:24:54 pmits applicable on services other than director remuneration.
Aashish Kumar Jain
05-Sep-2012 , 08:54:30 amIts better Dear CA Satuti Mahanjan jee and Sinny jee that first u should read the changes in service tax before answering and commenting. For your reference go to notification no.45/2012 dated 7 August 2012.