Regarding service tax on directorship.

This query is : Resolved

sanjay modi (Querist)
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13 June 2014 Dear Sir,

Let me know what is the defination of full time director for the purpose of payment of service tax under reverse charge mechanism.
In case,if a director is a proprietor of a business under his individual capacity,he cant be called a fulltime director,merely he is engaging in a business,however he is devoting his entire time in the company as a director.Please clear the position of director in this case,because companies are receiving notices from the service tax department regarding this issue.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 June 2014 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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