03 November 2012
Sir, we have seperate ledger of Director Remuneration in books of accounts, but remuneration paid to director, shows as salary A/c each month , is there any liability arise to pay service Tax under Reverse Mechanism Rule . because till date we have not paid any service tax on such remuneration, paid to director as salary a/c. if it is payable , can we avail credit of service tax paid on director's remuneration as salary a/c.
03 November 2012
Remuneration is paid to Director in course of employment. So there is no need to charge and pay service tax. Service tax is payable on the amount paid to non-executive directors or directors who are not in whole time employment...like sitting fees etc.
CAclubindia
