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Applicability of Service Tax on Prof. fess by Directors.

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This query is : Resolved

Purav (Querist)

11 November 2009 Professional Fees are paid to Directors of a Public Ltd Co. for rendering Management Services. Whether the Directors will have apply Service Tax in the Bill raised for the Management Service?

Further, kindly refer to the Circular no. 115/09/2009-ST dtd: 31/07/09 isssued by CBEC relating to the above matter.

Can you please explain the above circular i.e. whether the directors are exempted from applying of the Service Tax for charging of Professional Fees for rendering Management Service?

Jitender

Jitender (Expert)

11 November 2009 this circular was on the matter of commission paid to directors. Professional fees is different from commission. if they are providing management consultancy services to co & charging fees in excess of 10 lakh , then service tax is applicable.

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