TaxTMI 
TaxTMI 
SIR,
WILL THE RENT PAID TO A DIRECTOR BY A COMPANY FOR THE BUILDING OF THE DIRECTOR TAKEN ON LEASE BY THE COMPANY FALL UNDER 'THE SERVICES PROVIDED BY THE DIRECTOR' FOR THE PURPOSE OF REVERSE CHARGE OF SERVICE TAX
REGARDS
REVERCE CHARGE ON SERGICES PROVIDED BY DIRECTOR
20 Jun 2016 
5 Replies 
1241 Views Asked by
Reverse charge on services provided by a director contested; renting argued outside RCM, landlord liable for tax.
Whether rent paid by a company to a director for leased premises falls under the reverse charge mechanism is disputed: one view invokes reverse charge coverage of services by a director, while alternative analysis treats the transaction as ordinary renting by the director in the capacity of landlord, making the director the supplier liable for service tax subject to threshold exemptions. (AI Summary)
Whether rent paid by a company to a director for leased premises falls under the reverse charge mechanism is disputed: one view invokes reverse charge coverage of services by a director, while alternative analysis treats the transaction as ordinary renting by the director in the capacity of landlord, making the director the supplier liable for service tax subject to threshold exemptions. (AI Summary)