Md salary
This query is : Resolved
GOVIND PODDAR
(Querist)
28 January 2014
HOW A COMPANY CAN AVOID SERVICE TAX IMPLICATION IN CASE OF SALARY GIVEN TO ITS DIRECTOR..?
AVTAR SINGH
(Expert)
28 January 2014
Service tax is not applicable on salary paid to wholetime or executive directors who are having employer-employee relationship.
Ganeshbabu K
(Expert)
29 January 2014
Service tax is payable on services provided by non-executive, nominee and independent directors to the company w.e.f. 1-7-2012. Service tax is not payable in case of Managing Director or wholetime director or executive director, if the director is in full time employment of the company.
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bcoz
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Section 65B(44) of Finance Act, 1994 as introduced w.e.f. 1-7-2012 reads as follows – “Service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include— (a) – - (b) a provision of service by an employee to the employer in the course of or in relation to his employment (c) – - .
Thus, services provided by employee to employer have been excluded from the definition of ‘service’ itself.
.
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bcoz
.
.
.
Section 65B(44) of Finance Act, 1994 as introduced w.e.f. 1-7-2012 reads as follows – “Service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include— (a) – - (b) a provision of service by an employee to the employer in the course of or in relation to his employment (c) – - .
Thus, services provided by employee to employer have been excluded from the definition of ‘service’ itself.
CA Suresh Jain
(Expert)
29 January 2014
Dear CA Mr. Govind
Questing of avoiding tax arises only if you are paying tax. Are you paying service tax on MD's salary !?
Questing of avoiding tax arises only if you are paying tax. Are you paying service tax on MD's salary !?
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