Service by director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2012 Director of the company receiving rebate/commission from company, on which co. is deducting TDS @ 10%. what will be the S.tax implication on the same. Whether company has to pay s.tax under reverse charge mechanism.
"IF REBATE PAID TO INDIVIDUAL DIRECTOR DURING THE WHOLE YEAR IS LESS THAN 10 LACS THEN WHAT WILL BE SERVICE TAX APPLICABILITY ?

Thanks:

Rahul

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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19 November 2012 The Company is required to pay service tax on such commission/rebate even if the amount of rebate is less than Rs. 10 lakhs in the year

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Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2012 Dear Amit thanks,
I am agreed with your views but my doubt is that as per Circular No. 115/9/2009-ST dated 31.07.2009 on commission/remuneration paid to MD/WTD, it is clarified that even if amount paid to MD/WTD even if termed as commission is not the commission with in the scope of business auxiliary service and hence service tax would not be leviable on such amount.
so in such circumstances what will be the service tax implication on comm./rebate paid to MD/WTD.

Thx.

Rahul

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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23 July 2025 https://docs.google.com/document/d/1gZ7gfmmE6Kr37digmuXsqL4zCfJSGCohQPe-RX2I5QA/edit?usp=sharing

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