Service Tax on Directors Salaries

[Mathurthi RamKumar]

Dear All,

Greetings.. Kindly clarify my doubt. We are paying salaries to our directors and issue form 16. Can we labile for pay service tax as per notification 30/2012-st ? what is the difference between executive directors and non-executive directors.

Regards

M.RamKumar

99498 40959

AI Summary

Service Tax Not Applicable on Directors' Salaries if Deemed Employees: Clarification Under Notification 30/2012-ST /2012 A query was raised about the applicability of service tax on directors' salaries under Notification 30/2012-ST. Three responses clarified that service tax is not applicable if directors are deemed employees, as indicated by the issuance of Form 16. The Finance Act, 1994, specifies that services provided by employees to employers are exempt from service tax. Executive directors are full-time employees receiving salaries, while non-executive directors receive fees and are not on company payrolls. The responses collectively confirmed that no service tax is payable on directors' salaries due to the employer-employee relationship.