Service tax on director's salary
This query is : Resolved
05 September 2012
MY COMPANY NAME IS ACONOCI INDIA PVT. LTD.
AND IT HAS THREE DIRECTORS AND WE ARE PAYING THEM REMUNERATION RS. 40,000/- EACH. WE'RE ALSO SERVICE PROVIDER. SHOULD WE PAY SERVICE TAX ON DIRECTOR'S REMUNERATION OR NO. IF YES THEN PLEASE TELL ME DATE OF EFFECT.
IS THERE ANY CHANGE IN TDS ON DIRECTOR'S REMUNERATION. MEANS HAS IT BEEN CHANGE FROM 192B TO 194J.
ADVISE ME SOON
AND IT HAS THREE DIRECTORS AND WE ARE PAYING THEM REMUNERATION RS. 40,000/- EACH. WE'RE ALSO SERVICE PROVIDER. SHOULD WE PAY SERVICE TAX ON DIRECTOR'S REMUNERATION OR NO. IF YES THEN PLEASE TELL ME DATE OF EFFECT.
IS THERE ANY CHANGE IN TDS ON DIRECTOR'S REMUNERATION. MEANS HAS IT BEEN CHANGE FROM 192B TO 194J.
ADVISE ME SOON
RENGARAJ R.K
(Expert)
05 September 2012
Dear Mr Naveen,
Your query requires some clarification.
If the directors are whole time directors then there is no liability of service tax including managing director.
On the other hand, if they are outside directors ie independent directors or non-executive directors receiving sitting fees then, for all the remuneration received will attract 100% service tax under reverse charge mechanism.
Your query requires some clarification.
If the directors are whole time directors then there is no liability of service tax including managing director.
On the other hand, if they are outside directors ie independent directors or non-executive directors receiving sitting fees then, for all the remuneration received will attract 100% service tax under reverse charge mechanism.
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