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Reverse charge for service by a director to a body corporate

Queries 568 views 1 replies

Dear Professional colleagues,

If a Director (both executive and non-executive) draws salary or commission from its own company, is it taxable under Service Tax, under reverse charge mechanism as per latest Bill 2014-15?

What will be the situation if a Director is a professional Director and draws only salary or charges some fees for rendering professional service?

Thank you.

Replies (1)
reverse charge in this case is applicable only for directors who are not in whole time employment....meaning directors other than WTD and MD.....any remuneration paid to them falls in reverse charge mechanism..


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