Director's remuneration v/s service tax

[Ashok Chopra]

Respected Forum,

 

Will monthly Directror's remuneration paid to Directors of the company attrach SERVICE TAX as reverse charge?

 

pls advice

AI Summary

Debate on Service Tax for Directors' Fees: Clarifying Reverse Charge Rules Under Finance Act 2012 and Notifications 45/46. A forum discussion revolves around whether directors' remuneration is subject to service tax under reverse charge. The Finance Act 2012 indicates that non-whole time directors' fees are taxable, while full-time directors' salaries are not. Notifications 45 and 46/2012-ST clarify that the company, as the service recipient, must pay the tax. However, there is confusion about whether this applies to all directors regardless of their employment status. The debate includes considerations of how directors are classified under service tax law versus the Income Tax Act, highlighting the need for clearer distinctions and guidelines.