Service Tax on Directors Commission

[P S SATYA NARAYANA]

Dear Sir,

Whether Servvice Tax paid on Directors Commission / Sitting Fee under Reverse Charge can be taken CENVAT Credit.  If yes, is there any Departmental reference (Notification etc)  on this

thanks

P S Satyanarayana

 

[YAGAY andSUN]

Yes. Services rendered by the directors to the company should be considered as input services and Service Tax paid by the company should be eligible for Cenvat credit subject to Cenvat Credit Rule, 2004.

You would have to refer CENVAT credit Rules in this regard.

[P S SATYA NARAYANA]

THANK YOU, Sir

AI Summary

Input services: service tax on directors' commission paid under reverse charge may be claimed as CENVAT credit subject to rules. Services provided by directors to the company are input services, and service tax paid by the company on directors' commissions or sitting fees under reverse charge is eligible for CENVAT credit, subject to the conditions and procedural requirements of the Cenvat Credit Rules, 2004.