Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Service by a Director or Body Corporate

Service Tax - By: - Devam Sheth - Dated:- 9-4-2015 Last Replied Date:- 10-4-2015 - Clause 1.1 With effect from 1.7.2012, any service provided by a director who is non executive, nominee and independent directors to the company, thus on such activity carried service tax is payable. Under are the justifications for clarity. Section 65B(44) of the Finance Act, 1994 as introduced w.e.f 01.07.2012 is produced as follows: Service means any activity carried out by a person for another for consideration .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

According to rule 2(1)(d)EE of Service Tax Rules inserted w.e.f 07.08.2012 use the words in relation to service provided or agreed to be provided by a director of a company to the said company, the recipient of such service shall be person liable for paying service tax. Reverse charge mechanism can be applied only if a service is otherwise taxable. With reference to Notification No. 30/2012 which indicates payment of service tax by the service receiver under complete reverse charge @ 100% of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

corporate and not companies. For more clarification, the recent amendment will not affect societies or cooperative societies. The relationship between employer and employee is distinct from relation between service receiver and service provider. As long as activities performed are duties within the boundaries of employment, amount so paid by employee, even if termed as commission, it would be leviable to Service Tax. For further clarity refer CBE and C circular No. 115/09/2009-ST dated 31.07.200 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

onsideration for service can be in any form and need not be in monetary manner. If in case, stock options are offered to Non executive and Non whole time director, on basis of value of such benefits Service tax would be chargeable. For valuing stock option, provisions of Income Tax Act has to be taken care of. In order to ascertain the liability of Service Tax, the rate to be charged @ 12.36% on the gross value of services so rendered by the director, the reason is that the service receiver is b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e less than specified limit states that nothing in this notification shall apply to such value of taxable services in respect of which Service tax shall be paid by such person an DIN such manner as specified under sub-section (2) of Section 68 of the Finance Act, 1994 read with Service Tax Rules,1994. Moreover threshold exemption of ₹ 10 lacs is not applicable in cases where the service receiver is liable to pay Service Tax under reverse charge mechanism, as per the provisions of Section 6 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version