Service tax of Service provided by Director

Company liable to pay service tax on services received from its directors

Company liable to pay service tax on services received from its directors & Recipients of security services to discharge 75% of service tax liability

Company receiving services from the directors are being brought into tax net as new Notification No. 45/2012-ST, dated 7-8-2012 has clarified that in respect of services provided by the directors to company, liability to pay service tax would be on the company under reverse charge. Companies would be required to pay service tax on gross amount paid to directors. However, question arises whether all payments made by the company to directors would be covered by above reverse charge provisions.

In our view, services provided by directors as employee in the course of employer- employee relationship would not be covered by the said provision as employer-employee relationship activities are already excluded from the definition of service itself under section 65B (44) of the Finance Act.

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Payment of service tax – service tax payable on specified services – amendment in notification no. 30/2012-st, dated 20-6-2012

Notification No. 45/2012-ST, dated 7-8-2012

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 30/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 472 (E), dated the 20th June, 2012, namely:-
In the said notification,-

(a) in para I, in clause (A),-

(i) after the sub-clause (iv), the following sub-clause shall be inserted, namely :-

“(iva) provided or agreed to be provided by a director of a company to the said company;”;

(ii) in sub-clause (v), after the words “manpower for any purpose”, the words ” or security services” shall be inserted.

(b) in para II, in the Table,-

(i) after Sl. No. 5, the following S. No. and entries shall be inserted, namely:-

“5A in respect of services provided or agreed to be provided by a director of a company to the said company Nil 100%”
(ii) in Sl. No. 8, in the entries under the heading ‘Description of a service’, after the words “manpower for any purpose”, the words “or security services” shall be inserted.

CA Entry for Gradute / PG Students

This is to inform all concerned that with the issuance of the Notification
No. 1-CA(7)/145/2012 on August 1, 2012, the provisions relating to Direct
Entry Scheme for Graduates/Post Graduates, etc., with prescribed percentage
of marks, to the Chartered Accountancy Course have come into force from
August 1, 2012. The said Notification is reproduced hereinbelow for
information of all concerned.
Interested persons/students, i.e., freshers and existing students are
advised to watch for the details of registration formalities and of transitional
scheme including fee payable, registration form which will be
announced/published by around August 16, 2012.

Link to Notification

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Result of IPCC May,2012

The results of the Chartered Accountants Professional Competence and Integrated
Professional Competence Examinations held in May, 2012 are likely to be declared tentatively on

Tuesday, the 7th August, 2012 around 5.00 P.M. and the same as well as the merit list


(candidates securing a minimum of 55% and above marks and upto the maximum of 50th Rank
and in accordance with the decision of the Examination Committee) on all India basis will be
available on the following website:

http://www.caresults.nic.in

Arrangements have also been made for the students desirous of having results on their email
addresses to pre-register their requests at the above website, i.e.,
http://www.caresults.nic.in from 3rd August, 2012. All those registering their requests will be
provided their results through e-mail on the e-mail addresses registered as above immediately
after the declaration of the result.
Further facilities have been made for students of Professional Competence and Integrated
Professional Competence Examinations held in May, 2012 desirous of knowing their results with
marks on SMS. The service will be available through India Times.
For getting results through message students should type:
(i) for Professional Competence Examination result the following
CAPCE(Space)XXXXXX (where XXXXXX is the six digit PCE examination roll number of the
candidate)
e.g. CAPCE 000197
(ii) for Integrated Professional Competence Examination result the following
CAIPCE(Space)XXXXXX (where XXXXXX is the six digit IPCE examination roll number of the
candidate)
e.g. CAIPCE 002971
and send the message to
58888 - for all mobile services - India Times

(G. SOMASEKHAR)
ADDITIONAL SECRETARY (EXAMS.)