Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
>
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID :

Service Tax liability regarding rent paid to director by LTD. company

manish kumar

Dear sir,

If Director A is owner of a Ltd. company B. then he receive rent for this company. Is Company B pay Service Tax for rent paid to director A or not under Notification 45/2012 where it is clarified that As per Sl. No. 5 A of notification No.45 /2012-ST dated 20.6.2012 (With effect from 07.08.2012) in respect of services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate Service tax is payable under reverse charge mechanism (RCM) @100% by the company or the body corporate.

Company Not Liable for Service Tax on Director's Rent Under RCM; Director Must Register if Income Exceeds 20 Lakhs A discussion on a forum addressed whether a company must pay service tax under the reverse charge mechanism (RCM) for rent paid to a director. The query referenced Notification 45/2012, which mandates service tax payment by the company for services provided by a director. Responses clarified that renting immovable property is considered a service by the director in an individual capacity, not as a company director. Therefore, the director must register as a service provider and pay the service tax if their rental income exceeds 20 lakhs, making RCM inapplicable in this scenario. (AI Summary)
answers
Sort by
+ Add A New Reply
Hide
+ Add A New Reply
Hide
Recent Issues