Service Tax on service provided by Director to the company

[Kunal Pawar]

If Director gives his premises on rent to the company and receives some consideration. Whether the Service Tax is payable by the company under Reverse Charge Mechanism being Service provided by Director to the company or whether Director has to pay Service Tax on the rent income under Renting of Immovable Property category?

AI Summary

Company Liable for Service Tax on Director-Rented Premises Under Notification No. 30/2012, Reverse Charge Mechanism Applies A discussion on a forum addressed whether service tax should be paid by a company or a director when a director rents out premises to the company. The majority opinion, supported by several contributors, is that under Notification No. 30/2012, the company is liable to pay service tax under the reverse charge mechanism (RCM) when services are provided by a director. Some argue that if the director provides services in a non-directorial capacity, such as renting property, they should pay the tax themselves. However, the prevailing view is that the company should pay the tax, as renting is considered a service provided by the director.