Employer-employee exclusion protects meeting fees paid to whole-time directors from reverse-charge service tax liability.

Meeting fees paid to whole-time directors for duties performed within their full-time employment fall within the employer-employee exclusion from taxable services. The payment's description as meeting fees does not change the underlying employment relationship. Consequently, service tax under the reverse charge mechanism does not apply to such fees.

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Issues: Whether service tax under reverse charge mechanism is leviable on meeting fees paid to whole-time directors.

Analysis: A whole-time director is in full-time employment of the company, and remuneration paid for duties performed within that employment framework arises from an employer-employee relationship. The statutory exclusion for services provided by an employee to the employer in the course of employment applies to such payments. The character of the payment as meeting fees does not alter the employment relationship.

Conclusion: Meeting fees paid to whole-time directors are not liable to service tax under reverse charge mechanism.

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