06 January 2013
Ad Agency Pvt. Ltd. has received and paid on 2nd August 2012, a consultancy bill from its directors for the month of July 2012. The director is also receiving salary from company. Company wants to know whether it is liable to pay service tax on amounts paid to directors under reverse charge mechanism? 1-consultancy bill
06 January 2013
As it seems that Director is employee of the company because getting salary , it would not be taxable under service tax & no application of reverse charge, but consultancy charge would be taxable subject to the other facts.
CAclubindia
