Service tax applicable for director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 May 2013 our company two director they get remuneration. they sign on salary muster, p.f.deduct their salary.Is their salary applicable for deduct service tax as per new rule.

Ganeshbabu K

Ganeshbabu K (Expert)
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14 June 2013 No need to pay service tax in your case.

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.

Thanks®ards
Ganeshbabu k

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