RCM on Service provided by director to company

services like giving guarantee for loan taken by company, sitting fees, commission etc.

kindly provide me in detail

Director’s service to Company or Body Corporate

Clause 1.1

With effect from 1.7.2012, any service provided by a director who is non executive, nominee and independent directors to the company, thus on such activity carried service tax is payable. Under are the justifications for clarity.

Section 65B(44) of the Finance Act, 1994 as introduced w.e.f 01.07.2012 is produced as follows:

“Service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include –

(a)……………;

(b) a provision of services provided by employee to employer in the course of or in relation to his employment;

(c) ……………;

From the above explanation, services provided by employee to employer have been excluded from the definition of ‘service’.

Nice Mr. Vinod Babu 👌