TaxTMI 
TaxTMI 
Service provided by Directors under partial reverse charge
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....ervice provided by Directors under partial reverse charge<br> Query (Issue) Started By: - Venkat Raj Dated:- 13-8-2012 Last Reply Date:- 17-8-2012 Service Tax<br>Got 8 Replies<br>Service Tax<br>Dear sir, As per Notn No 45/2012-ST dated 07.08.2012 has amended the Not No 30/2012-ST dated 20.06.2012, the receipent of service has to pay service tax for the services rendered by the director. My query ....
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....is that after payment of the Service tax, can the company avail cenvat credit ? Reply By JAMES PG: The Reply: It is available subject to the eligibility norms as per Cenvat Credit Rule Reply By Venkat Raj: The Reply: My Query is regarding that only. Whether service tax paid towards the services rendered by the director is eligible for cenvat credit or not? Can any body clarify it? Reply By JA....
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....MES PG: The Reply: As per Rule 2(l) of CCR, input service is defined as any service used by a provider of output service provider for providing an output service or used by a manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clerance of final products upto the place of removal and includes services used in relation to ( among other things) acc....
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....ounting, auditing, credit rating, share registry etc. Even though the word "such as" , " activities related to business" etc are removed from the definition of input services, the usage of the words " any" , " includes" etc enlarges the scope of definition. Holding of Board Meetings is statutory requirement under Companies Act and payment of fees to the Directors is also emanating from the same. H....
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....ence it is felt that there is no infirmity in availing credit of ST paid on the fees paid to the Directors of own Company Reply By Gajanand Verma: The Reply: Yes, the Company is entitled to avail the input of the Service tax paid on the directors remuneration on reverse charge basis. the service tax paid by the Company on directors remuneration will be considered as common services and will be e....
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....ligible under Rule 6(3) of CCR, 2004 as per ratio of taxable and exempted services. Reply By Ramanujam Varadarajan: The Reply: Services provided by Directors are eligible input services for availing Cenvat credit. But if the concern is involved in providing both taxable and exempted output services, then the credit will be restricted as per Rule 6 of CCR, 2004 Reply By PUNITA BHATIA: The Reply:....
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.... Can anybody clarify what are the directors services to be included for service tax Reply By Ramanujam Varadarajan: The Reply: In respect of all the services provided by a director of a company to the company, the reverse charge service tax would apply on the company. If the director is an employee of the company, the compensation paid will be treated as in the nature of employment and would not ....
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....attract service tax. Reply By PUNITA BHATIA: The Reply: What about the sitting fees and salary to directors.<br> Discussion Forum - Knowledge Sharing ....