TaxTMI 
TaxTMI 
TaxTMI 
Whether service tax leviable on remuneration paid to Directors in addition to salary
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....hether service tax leviable on remuneration paid to Directors in addition to salary<br> Query (Issue) Started By: - samiuddin ansari Dated:- 10-5-2018 Last Reply Date:- 12-5-2018 Service Tax<br>Got 5 Replies<br>Service Tax<br>Hello....Good evening Sir, My friends Company engaged in manufacture of Ball and Bearing and accordingly registered with Central Excise. Now, CGST Audit people, at the time ....
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....of conducting audit, raised an observation and demanded service tax on remuneration paid to all the Directors of the Company holding that the remuneration is not a salary since professional tax as per Gujarat Professional Tax Act, no professional tax had been deducted from the amount paid to them. Considering only such aspect, they raised an objection and instructed to pay with interest and penalt....
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....y. Please throw light on such matter and guide as to whether service tax is leviable on such amount as this is not a commission or special charges or any kind fees paid to them. Reply By Rajagopalan Ranganathan: The Reply: Sir, If the rtelationship between the director and the company is in the nature of employee-employer then no service tax is chargeable since according to Section 65 B (44) (....
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....b) of erstwhile Finance Act, 1994 " "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 employer in the course of or in relation to his employment. Non-payment of profession tax to the local authorities shall not make the payment made liable to service....
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.... tax. Reply By Ganeshan Kalyani: The Reply: I totally agree with the reply of Sri Rajagopalan Sir. Service tax is not applicable when there is employee- employer relationship between the Director of the company and the company. Reply By KASTURI SETHI: The Reply: I agree with both experts. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Shri Rajagopalan. Reply By YAGAY....
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.... and SUN: The Reply: Service Tax would not be applicable on the amount which is disbursed as salary and if TDS is deducted on such amount.<br> Discussion Forum - Knowledge Sharing ....