CALCULATING THRESHOLD LIMIT FOR SERVICE PROVIDER

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  1. jangala nagaraju

    jangala nagaraju New Member

    X, a director of the company receives income in two ways:
    (1) as a director (remuneration)
    (2) consultancy fee (for which reverse charge mechanism is applicable)
    for computing threshold limit for a service provider , what value of the service to be considered from above?
     
  2. ZED

    ZED Well-Known Member

    Under which section the tax has been deducted?
    If the tax has been deducted u/s 194J then it implies that director has rendered professional service and hence he is not to be considered as an employee.

    Service provided by an employee to his employer is outside the purview of service tax because it has been specifically excluded from the definition of the service.

    Therefore you should consider the aggregate value of service for the purpose of Service tax.
     
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