Partners salary from partnership firm
This query is : Resolved
08 September 2013
Sir/Mam,
Case is like this :
Mr. ABC is a partner in a partnership firm, receives salary. Also in individual capacity he is in receipt of professional charges.
So the question is wheather salary received from partnership firm should be included in his professional receipt to calculate the turnover of 9 lacs for service tax applicability ?
Facts :
1. Partnership firm and partner are under same profession.
2. Gross receipt of the firm 8.5 lacs, not registered in service tax.
3. Salary to partner Rs. 1 Lac.
4. Partners professional receipts in individual capacity are Rs. 8.5 lacs.
5. Partner is also not registered under service tax.
Please guide
Rajesh Heda
Case is like this :
Mr. ABC is a partner in a partnership firm, receives salary. Also in individual capacity he is in receipt of professional charges.
So the question is wheather salary received from partnership firm should be included in his professional receipt to calculate the turnover of 9 lacs for service tax applicability ?
Facts :
1. Partnership firm and partner are under same profession.
2. Gross receipt of the firm 8.5 lacs, not registered in service tax.
3. Salary to partner Rs. 1 Lac.
4. Partners professional receipts in individual capacity are Rs. 8.5 lacs.
5. Partner is also not registered under service tax.
Please guide
Rajesh Heda
08 September 2013
Service rendered during course of employment is outside ambit of service tax. For calculating nine lakh limit the value of taxable services should be considered.
08 September 2013
Service rendered during course of employment is outside ambit of service tax. For calculating nine lakh limit the value of taxable services should be considered.
08 September 2013
Thanks sir,
But partner and partnership firm are not under employee-employer relationship. so can we said that salary received by the partner is during the course of employment?
But partner and partnership firm are not under employee-employer relationship. so can we said that salary received by the partner is during the course of employment?
08 September 2013
I agree. But still, salary in the course of employment in a partnership firm not taxable in service tax. Only in limited company, service tax is leviable for non-executive directors salary, commission, sitting fees etc.,
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