Treatment of director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2012 As per new amendment in income tax,TDS need to be deducted u/s 194J in case of payment made to director,while as per new negative list of services, service of an employee to his employer is exempt from service tax regime. Please tell how to treat director for the purpose of Service tax-Employee or Professinal?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 August 2012 You have to bifurcate the remuneration into salary and other remuneration.

The amount paid as salary will be outside the purview of service tax.

Amount paid as other remuneration shall be in the capacity of a professional and service tax shall be leviable on such amount.

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