Service tax on director re-ibursement

Hi, 

i came to know that from now onwards all type of re-imbursements given to director against the expenses made on behalf of company will be charged Service Tax.Is it true ? 

Since We have to buy few things for our company from outside India like Web Hosting we have no other way, expcept credit card to pay the bills and Banks never issue credit card on the company's name.

So any of our director pay bills and we use to reimburse the payments.But if the above notification is true we have to add service tax on the payments made.

Can anyone guide on this what is the best way out of it.

Replies (2)
Yes, As per notification no.30/2012, payment to a director is under reverse charge mechanism of service tax..... But this notification is not applicable to managing or executive directors....
Yes, As per notification no.30/2012, payment to a director is under reverse charge mechanism of service tax..... But this notification is not applicable to managing or executive directors.... There is no way out of it, as per service tax regulations, you should get service tax registration and remit tax to the authorities every month....

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