Service Tax on Directors Remuneration under reverse charge

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..... Service Tax on Directors Remuneration under reverse charge
Query (Issue) Started By: - deepak kalambate Dated:- 22-7-2013 Last Reply Date:- 23-7-2013 Service Tax
Got 7 Replies
Service Tax
Dear Sir, We have a employee director & we are paying salary to him. Department is asking us to pay service tax on this under reverse charge Pl let us know is there Board's clarification on this. .....

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..... Pl advise Regards, Deepak R Kalambate Reply By Sanjeet Kumar: The Reply: Dear Deepak As per Section 65B (44) service provided by an employee to his employer is not covered by the meaning of Services. So service provided by the director in capacity of employee is not liable to service tax. You should reply to department that your company is paying salary to director for their employee capacit .....

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..... y not for their professional capacity to support this you can attach copy of resolution for appointment of WTdirector in employee capacity. I think you got my point. Reply By deepak kalambate: The Reply: Thanks ! Reply By PAWAN KUMAR: The Reply: Please read service tax Notn No 45/2012-ST dated 07.08.2012 wherein service provided by director of company is liable to service tax under reverse .....

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..... charge and in this case service tax is be paid fully by receiving company. There is no liability of service tax of the director. Reply By PAWAN KUMAR: The Reply: Dear Sir, In earlier reply, i expressed the views for commission paid by the company to director, but in case the director acting as an employee, the services performed by him is not taxable as per clause 65B (44)(b). Reply By Pradeep .....

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..... Khatri: The Reply: whole time directors are exempted. Companies having whole time directors are not liable to pay service tax under reverse charge mechanism. Reply By deepak kalambate: The Reply: Dear Sir, Is there any case laws regarding the subject matter? Thanks & Regards, Deepak Reply By Sanjeet Kumar: The Reply: Dear Deepak, These are the latest Amendments and for judgement on this .....

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..... type of cases you have to wait around 10-15 yrs. there is simple logic if Director is whole time then not covered by ST. if part time then company have to pay ST under reverse charge.
Discussion Forum - Knowledge Sharing .....

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