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

Employee provision of services excludes directors' salaries from service tax when an employer-employee relationship exists.
Salaries paid to directors who are on the company payroll constitute a provision of service by an employee to the employer and are excluded from service tax; payroll evidence such as Form 16 supports this employer-employee relationship and the inapplicability of Notification No. 30/2012 ST. Executive directors are full time salaried employees on payroll, while non executive directors typically receive sitting or consultancy fees and are not on payroll, affecting their treatment under service tax rules.