Service taxc

technical consultancy paid to foreign director wheather liable to service tax we r paying amount in his bank account in india

Replies (2)

First check, Whether the amount paid to director in Director Capacity or Technical Consultant Capacity.

If it is paid to foreign director in Director Capacity no Service Tax is Attracted.

On the other hand, If it is paid to forign director in Technical Consultant Capacity it amounts to import of Service. Accordingly, Import of Service Rules will apply.

As per Import of Service Rules, service recepient has to pay service tax @ 10.30% under reverse charge mechanism.


Regards,

Kiran Kumar V


thanks

the dierctor is IT professional but does not have separate consultancy business he is only a director in the company

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