Reverse Charge- Services of Director

[Sanjeev Sharma]

As per Notn No 45/2012-ST dated 7.8.12, Service tax under reverse charge is to be paid by service recipient in respect of  services  provided or agreed to be provided  by a director of a company to the said company.

 

Whether service tax is to be paid on salary to be paid to whole time director/ managing director

AI Summary

Reverse charge on director services limited to non executive directors; remuneration to directors as employees is excluded from service tax.
The Notification's reverse charge applies to director services provided to the company only where those services are not within an employer employee relationship; remuneration paid to whole time, managing or executive directors who are company employees is excluded from service tax, while only non executive directors' services attract reverse charge.