|
Ravi Jagetiya(CA Final)
( Author )
07 August 2012
|
As per draft circular no. 254/127/2012 dated 27th july 2012, it says that "Services of a director on the board of a company have now become taxable. A director may be appointed either in an individual capacity or to represent an entity (including government) who has either invested in the company or is otherwise authorized to nominate a director. When a director receives payment in his personal capacity, the same is liable to be taxed in the hands of the director. However, where the fee is charged by the entity appointing the director and is paid to such entity, the services shall be deemed to be supplied by such an entity and not by the individual director. Thus in the case of Govt. nominees, the services shall be deemed to be provided by the Govt. and liable to be taxed under the exclusion sub- (iv) of clause (a) of section 66D of the Finance Act, 1994 i.e. support services by Government to business. Such services are liable to be taxed on reverse charge basis."
So whether every director has to get himself registered under service tax now and even he is not getting any directors remuneration then also he has to file NIL return ?
Please explain
thanks & regards
|
) now 
