Am i liable for service tax on fees paid

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Hello

 

I am a full time director of a pvt limited along with my wife, also a director. We have been providing software services to a foreign company and the money for services provided are remitted to the company account from the US based 3rd party foreign company.

I pay myself salary/fees by deducting against 94J code via eTDS (10% deduction). Since we are receiving all our revenue from foreign firm, we don't have a service tax for company. My wife and I being full time employees of our firm, are wondering if we have any service tax liability since we are filing under 94J. We are the sole 2 employees and we are the ones who provide the software code for the foreign company.

Any help with this is greatly appreciated.

Thanks

 

 

Replies (3)

If Either of you, exceed the basic exemption limit of 10L; YES

Thanks for prompt reply sir. I paid myself about 12.5 lacs via 94J in 2014-2015 and about 22 lacs as 94J for period 2015-2016. I spoke to a local CA and he is saying that don't try to correct past mistakes, from this month onwards, just start filing upto 10 lacs as 94J and rest as 92B.

I am unsure now as to what the best course of action is. please advise

Thanks

Naturally Better Idea, but in that case make necessary changes for remuneration to directors and take full amount under salary itself. 


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