TaxTMI 
TaxTMI 
Respected Forum,
Will monthly Directror's remuneration paid to Directors of the company attrach SERVICE TAX as reverse charge?
pls advice
Director's remuneration v/s service tax
16 Aug 2012 
6 Replies 
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Director services reverse charge: company becomes liable for service tax on director-provided services, clarity needed on whole-time status.
Notifications in August 2012 include services by a director as taxable and place liability on the recipient company under the reverse charge mechanism. The notifications do not distinguish whole time and non whole time directors, creating uncertainty whether salaried or regularly remunerated directors fall outside the director service category; commentators have noted reliance on income tax or company law criteria but service tax clarification is absent. (AI Summary)
Notifications in August 2012 include services by a director as taxable and place liability on the recipient company under the reverse charge mechanism. The notifications do not distinguish whole time and non whole time directors, creating uncertainty whether salaried or regularly remunerated directors fall outside the director service category; commentators have noted reliance on income tax or company law criteria but service tax clarification is absent. (AI Summary)