In reverse charge mechanism service tax is to be paid on services provided by directors. In case of independant directors who just attend the board meetings and take sitting fees, do we need to pay service tax on sitting fees (Rs.20000 as per company act)
regards,
Yes, Under Reverse Charges There is No Limit Specified of 10 Lacs.
So Need to Pay by Company Only.
Not only sitting fees, any remuneration, commission etc paid to independent directors after 07.08.12 attract service tax and payable by Company under reverse charge. There is no limit.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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