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Is service tax liable u/s 192 remuneration

rs800002 (Director) (28 Points)

05 September 2014

i am director of one single company and i and getting remuneration of around 7 lacs per annum and my TDS is been deposit under section 192. In this case should i pay service tax is also ????

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12 Replies

Brahma Nand (Finance associates) (63 Points)
Replied 05 September 2014

No, your remuneration is part of salary

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Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 05 September 2014

Service tax will be applicable only in case of non executive directors under reverse charge mechanism.

Karan Arora (Manager) (55 Points)
Replied 05 September 2014

You come under employer employee relationship which is not a part of service.

rs800002 (Director) (28 Points)
Replied 05 September 2014

Thanks you all. Looking forward for your valuable suggestions. Rahul Singh.

prithviraj mohandoss (Finance associates) (143 Points)
Replied 05 September 2014

i have query about 194j(1)(ba) . if director getting renumeration other than salary would 194j(1)(ba) applicable

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chanti (hyderabad) (62 Points)
Replied 07 September 2014

There is a section says that TDs has to be deducted @ 10% on remuneration to director without any slabs. So fall under that category

Ramanuj (Accountant.) (834 Points)
Replied 13 September 2014

agree with above

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 13 September 2014

The law is clear that if there is Employer - Employee relationship, then service tax is not applicable. The deduction of TDS u/s 192 or 194J could be used as evidence to proof the existance or non-existance of such relationship but the ultimate deciding factor to keep yourself outside the scope of service for service tax purpose is that you must proof that you are getting remuneration as an EMPLOYEE.

rs800002 (Director) (28 Points)
Replied 13 September 2014

Manoj, How should i proof that we are getting remuneration as an EMPLOYEE.

rs800002 (Director) (28 Points)
Replied 13 September 2014

Manoj, How should i proof that we are getting remuneration as an EMPLOYEE.

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Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 13 September 2014

The terms and conditions of the contract entered by you with the company may be relevant. Further, various court judgement have interpreted the existance of employer - employee relationship which could be helpful.