Service provided by Directors under partial reverse charge

[Guru Murthy]

Dear sir,

As per Notn No 45/2012-ST dated 07.08.2012 has amended the Not No 30/2012-ST dated 20.06.2012, the receipent of service has to pay service tax for the services rendered by the director. My query is that after payment of the Service tax, can the company avail cenvat credit ?

AI Summary

Companies Can Avail Cenvat Credit on Director Fees Under Rule 2(l) and Rule 6 of CCR, 2004 A discussion forum addresses the applicability of Cenvat credit on service tax paid for services rendered by directors under the partial reverse charge mechanism. Participants clarify that companies can avail Cenvat credit for service tax paid on directors' fees, as these are considered input services under Rule 2(l) of the Cenvat Credit Rules (CCR), 2004. However, if a company provides both taxable and exempted services, credit is restricted according to Rule 6 of CCR, 2004. It is noted that if directors are employees, their compensation is not subject to service tax. Queries about specific director services and fees are also raised.