Service tax liability on director remuneration
This query is : Resolved
03 November 2012
Sir,
we have seperate ledger of Director Remuneration in books of accounts, but remuneration paid to director, shows as salary A/c each month , is there any liability arise to pay service Tax under Reverse Mechanism Rule . because till date we have not paid any service tax on such remuneration, paid to director as salary a/c. if it is payable , can we avail credit of service tax paid on director's remuneration as salary a/c.
regds
Vinay Karnik
Ahmedabad
we have seperate ledger of Director Remuneration in books of accounts, but remuneration paid to director, shows as salary A/c each month , is there any liability arise to pay service Tax under Reverse Mechanism Rule . because till date we have not paid any service tax on such remuneration, paid to director as salary a/c. if it is payable , can we avail credit of service tax paid on director's remuneration as salary a/c.
regds
Vinay Karnik
Ahmedabad
CA Parul Saxena
(Expert)
03 November 2012
Remuneration is paid to Director in course of employment. So there is no need to charge and pay service tax.
Service tax is payable on the amount paid to non-executive directors or directors who are not in whole time employment...like sitting fees etc.
Service tax is payable on the amount paid to non-executive directors or directors who are not in whole time employment...like sitting fees etc.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
