TaxTMI 
TaxTMI 
SERVICE TAX UNDER REVERSE CHARGE MECHANISM
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....ERVICE TAX UNDER REVERSE CHARGE MECHANISM<br> Query (Issue) Started By: - SURYAKANT MITHBAVKAR Dated:- 17-9-2016 Last Reply Date:- 20-9-2016 Service Tax<br>Got 5 Replies<br>Service Tax<br>We have paid remuneration to directors on monthly basis and all directors are registered with Registrar of Companies. Further we have issued FORM 16 every year to them. In view of the above, whether we have to....
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.... deduct service tax on remeneration paid to directors under reverese charge mechanism or not necessary. Reply By MUKUND THAKKAR: The Reply: TDS is deducted under section 192 of the Income Tax Act, 1961 is not leviable to service tax as the said amount is received by the directors in lieu of their employment with the company Reply By YAGAY AND SUN: The Reply: The amount on which TDS is deducted....
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.... is nothing but would be treated as salary. Hence, no service tax would be applicable. Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 65 B (44) (b) of finance Act "service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include- " a provision of service by an employee to the employe....
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....r in the course of or in relation to his employment." Since you are paying monthly remuneration to the directors they are employees of the company. Therefore any service rendered by such directors are by an employee to the employer and it is not a service. Hence no service tax is payable. Reply By MARIAPPAN GOVINDARAJAN: The Reply: Since the director is a regular employee no service tax is....
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.... payable under RCM. Reply By Ganeshan Kalyani: The Reply: Sir, Reverse charge mechanism is not applicable in case of service provided by employee to the employer. Further, service tax under reverse charge is an additional liability to be borne by service recipient It cannot be deducted as like TDS. Thanks.<br> Discussion Forum - Knowledge Sharing ....