Liablity for Tax

[Harsh Jindal]

Whose services are liable to Service Tax-directors or board of   directors?

AI Summary

Service Tax Exemption Clarified: Employees as Directors Exempt; Non-Employee Directors Subject to Reverse Charge Under Section 65B (44) (b). A query was raised regarding the liability for service tax on directors' services. It was clarified that services provided by managing and whole-time directors, who are employees of the company, are exempt from service tax under the exclusion clause in Section 65B (44) (b). However, services provided by part-time, expert, independent, or nominee directors, who are not employees, are considered professional services and are subject to service tax under the reverse charge mechanism by the company, effective from August 7, 2012.