Service tax on director remunetarion

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 Hello Friends

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 ?

Please clarify.

Gursimar Singh

Gursimar Singh (Expert)

17 September 2012 Sales commission forms part of Remuneration, so in my opinion ST is to be paid on both.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

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.

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)

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...

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