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of <h1>Commissions to company directors classified as remuneration, not taxable service under 'Business Auxiliary Services.'.</h1> The circular addresses the issue of service tax applicability on commissions received by company directors under 'Business Auxiliary Services.' It clarifies that commissions paid to directors, in addition to their salary, are considered remuneration rather than a service. This is because the employee-employer relationship differs from that of a service provider and receiver. Consequently, such payments, even if termed as commissions, are not subject to service tax as they fall within the scope of employment duties. This information should be disseminated to all trade association members.
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