31 December 2012
I HAVE PAID THE REMUNERATION TO THE DIRECTOR MONTHLY BASIS AMT.RS.50000/- AND ALSO DEDUCTED THE PROVIDENT FUND AND ALSO T.D.S. (PROFESSION) DEDUCTED IN HIS SALARY.COMPANY HAS GIVEN THE SERVICE TO THE DIRECTOR FOR MOTOR CAR,TRAVEL EXPENSES,TELEPHONE AND MOBILE SERVICES USES AND ITS RUNNING EXPENSES. THE PARTY HAS THE INVOICE IN THE NAME OF COMPANY AND DIRECTOR FORRWARD THE INVOICE TO THE ACCOUNT PAYABLE DEPT.AND COMAPNY HAS DIRECT PAYMENT TO THE PARTY.
MY POINT IS THIS WHETHER SERVICE TAX IS APPLICABLE ABOVE ALL ARE EXPENSES OR NOT.
31 December 2012
In my view, once the persons who has provided the services to your director has charged the service tax on these expenses and raise the invoice in your company name, then you are liable to pay service tax only on these invoice.
CAclubindia
