As per service tax notification 30/2012 dt. 20.06.2012, Director are required to pay service tax on director remuneration. and notification no. 44/2012 a company is liable to pay service tax on Director remuneration under reverse charge. my question is A private limited is paying Rs. 20000/- per month to its two directors each and 1% commission on sales. so is company liable to pay service tax on director salary and commission ?
17 September 2012
On Commission Its Compulsory to Pay Service Tax.
& On Remuneration, Just Check Whether Director is Executive or Non Executive. If Executive Then No Need to Pay Service Tax. In Case of Non Executive Service Tax Need to Pay.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
17 September 2012
but as per my knowledge status of director as per notification 45/2012.
12 October 2012
tax applicable only for payments made to non-executive directors as executive directors are employees and employee services are out of tax net...