Service tax on remuneration of director

This query is : Resolved 

11 August 2012 IS SERVICE TAX IS APPLICABLE ON THE REMUNERATION PAID TO DIRECTOR,S OR NOT.

12 August 2012 Service tax is applicable except salary paid to directors meaning thereby remuneration is covered under the tax net. Accordingly, company has to pay service tax under reverse charge method on which threshold exemption of Rs. 10 lakhs can't be availed.


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