Mar. 22 – Before the new budget was issued, there was ambiguity surrounding the dealing of director’s remuneration. There is inconsistency about whether it is considered salary income or business income chargeable under the head business and profession. However, in the new union budget, India has issued a new clause – clause 194(J) – clarifying that any payment or commission paid to the director of a company is liable to tax deduction at source at the rate of 10 percent.
Section 194(J) is considered for professional and technical services. Therefore, by including the director into the remuneration, it signifies that remuneration or commission paid to directors must be professional services. Then, director remuneration must be considered as business income.
If the earnings of any professional cross the threshold limit u/s 44AB (i.e. 25 lacs for the 2013-14 fiscal), he/she is legally responsible for a tax audit. By inclusion of director remuneration in professional and technical services for TDS purpose, it is clear that the concerned Income Tax Department of India intends to charge such income as income derived from the source (business and profession). Then, section 44AB becomes applicable to such entities and any person getting director remuneration exceeding the threshold limit may be legally responsible for a tax audit.
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Dear Sir,
I request you to intimate current rates of service tax for the year 2012-13 at the earliest.
Thanks with regards,
Satyavir Singh
dear sir
please tell what is new rate of service tax for f.y. 2012-13 ( 12.36 %) ??
if person is contractor ( material+ labour ) then what is rate of service tax to be quote on bill as per my infomation ( 4.8% on labour ?? + 5 % sales tax ?? + work tax ??
thanks
vijay patil
plz send me new rate of service tax with autho. letter. thanks
sudhir kumar
What is the service tax for the civil work as per the new budjet 2012-13
Guys, there are state by state differences as you know. I’ll have one of our staff see what we can do about providing a summary. Other please email to india@dezshira.com for assistance.
Dear All,
The current rate of Service Tax for Financial Year 2012-13 is 12% Plus 3% Education Cess making it a total 12.36%.
From July 1,2012 the new service tax regime based on negative list of services which are exempt from tax will be in force.
The rate of tax remains same for civil contractors as well.
Should you need any more information , feel free to contact us.
Best Regards,
Cherry Bansal
Hi, sir
Is there any tax exemption for civil labour works for the value upto 10 lacs.
If any thing like that pls. reply me with details.
@Pushparaj, please address to us directly at india@dezshira.com and one of our staff will get back to you. Thanks – Chris
Ser Please tel me Directors Remuneration ans Salary will be taxable.
Dear Sir,
Please tell what is new rate of service tax for f.y. 2012-13 ( 12.36 %) i.e. July 1, 2012
if person is contractor ( Security agency ) then what is rate of service tax to be quote on bill.
thanks
Dear Rajesh,
in case of directors the remuneration as salary is not liaible for service tax but any other remuneration paid as sitting fee or any other nature will be taxable for Service Tax.
Dear Manikant,
it should be 12.36% .
If any more clarification required then kindly mail on cherry.bansal@dezshira.in.
Thanks,
Cherry Bansal
What is the service tax for the labour charges as per the new budjet 2012-13
Dear Umesh,
Supplying Farm Labour is exempt from Service Tax.
Kindly elaborate your query or send it to our email id india@dezshira.com.
Thanks,
Cherry Bansal
what is the service tax rate for sitting fees in board & committee meeting for the year 2012-13?
Dear Puvaneswari . V ,
Thanks for the query!
The Service Tax rate for sitting fees in board and committee meeting for the year 2012-13 is 12.36%.
Thanks,
Cherry
What is the receipt limit for a Civil Contractors to Liable Service Tax
As a general limit to all service provider, if aggregate value not exceeding one million for first consecutive payments received during a financial year than one need not to pay service tax.