75th Founding Day Lecture Meeting on “India@2030” Know More

September 2009

Service Tax not applicable on commission paid to Managing Director/Director : Circular No. 115/08/2009-ST, dated 31-7-2009.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
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Part B : Indirect Taxes

 Updates in VAT and Service Tax :

Service Tax UPDATE

Circulars

  1. Service Tax not applicable on commission paid to Managing
    Director/Director : Circular No. 115/08/2009-ST, dated 31-7-2009.

It is clarified that remunerations paid to Managing
Director/Directors of companies, whether whole-time or independent, when being
compensated for their performance as Managing Director/Directors would not be
liable to Service Tax.

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