Service tax on sitting fees of directors

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YOGESH (Querist)
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02 July 2013 In reverse charge mechanism service tax is to be paid on services provided by directors. In case of independant directors who just attend the board meetings and take sitting fees, do a company need to pay service tax on sitting fees ? Does it require any approval at AGM of the company ? Thanks

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Ganeshbabu K

Ganeshbabu K (Expert)
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02 July 2013 1)no approval required at AGM it is statutory obligation

2)Yes..Service tax is payable on services provided by non-executive, nominee and independent directors to the company w.e.f. 1-7-2012.

3)Service tax is not payable in case of Managing Director or wholetime director or executive director, if the director is in full time employment of the company.

Thanks & regards
Ganesh babu k

YOGESH

YOGESH (Querist)
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02 July 2013 Thank you Ganeshsir for your promt Reply

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