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Service tax on remmunartion

This query is : Resolved 

12 October 2014 if a company in two director, company paid director remmunartion 18 lacs per ann. both director. so please advise service tax applicable for remmunartion paid ??

13 October 2014
Service tax is not payable in case of a Managing Director or a Whole-time Director or Executive Director, if the Director is in full time employment of the company.

Service tax will be payable on Sitting fees paid to independent (non-employee) Directors for attending meetings of the Board and the Committees of Board, travelling and incidental expenses for attending such meetings, commission or other remuneration paid, if any.

This service tax is to be paid under reverse charge method.

In your case, if there is an employee- employer relation exist then there is no need to pay service tax.


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