TaxTMI 
TaxTMI 
Please clarify, whether Directors need to pay service tax on commission they have received for the Financial year 2011/12 (prior to 1.7.2012), in July 2012.
Service Tax on Directors Commission
24 Aug 2012 
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Service tax on directors' commission: taxability depends on when the service was performed, not merely on payment timing.
Service tax on directors' commission is governed by the period when the service was provided rather than the date of payment; commissions received after the relevant charge date for services rendered earlier do not attract tax on that basis, and Circular No. 115/09/2009 ST may be relied upon as a defence in absence of contrary departmental guidance. (AI Summary)
Service tax on directors' commission is governed by the period when the service was provided rather than the date of payment; commissions received after the relevant charge date for services rendered earlier do not attract tax on that basis, and Circular No. 115/09/2009 ST may be relied upon as a defence in absence of contrary departmental guidance. (AI Summary)