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

Service tax on directors' fees under reverse charge is eligible for CENVAT credit as per CENVAT Credit Rules, 2004. A participant inquired whether service tax paid on directors' commission or sitting fees under the reverse charge mechanism can be claimed as CENVAT credit. A respondent confirmed that such services provided by directors to the company qualify as input services. Therefore, the service tax paid by the company is eligible for CENVAT credit, in accordance with the CENVAT Credit Rules, 2004. The inquirer expressed gratitude for the clarification.