TaxTMI 
TaxTMI 
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?
Service Tax on service provided by Director to the company
26 Nov 2015 
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Reverse charge mechanism: company may bear service tax when a director supplies services, subject to capacity and contract.
Notification No. 30/2012 (Sl. 5A) shifts service tax liability to the company for services "provided or agreed to be provided by a director," which practitioners interpret to include letting immovable property to the company so that the company pays under Reverse Charge Mechanism, subject to exceptions where the director acts as an employee (employee exemption) or where premises are used as residential dwelling falling under the negative list; the contractual terms and the director's capacity are decisive factors. (AI Summary)
Notification No. 30/2012 (Sl. 5A) shifts service tax liability to the company for services "provided or agreed to be provided by a director," which practitioners interpret to include letting immovable property to the company so that the company pays under Reverse Charge Mechanism, subject to exceptions where the director acts as an employee (employee exemption) or where premises are used as residential dwelling falling under the negative list; the contractual terms and the director's capacity are decisive factors. (AI Summary)