Service tax on directors' remuneration: payments for board duties are not taxable, separate consultancy fees are. Remunerations paid by a company to its Managing Directors or Directors, even if labelled as commissions, are not commissions within the scope of Business Auxiliary Service and are not chargeable to service tax. Amounts paid for performance of board or managerial functions are not payments for Management Consultancy Service; however, separately compensated advisory or consultancy services provided by directors are taxable as management consultancy.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax on directors' remuneration: payments for board duties are not taxable, separate consultancy fees are.
Remunerations paid by a company to its Managing Directors or Directors, even if labelled as commissions, are not commissions within the scope of Business Auxiliary Service and are not chargeable to service tax. Amounts paid for performance of board or managerial functions are not payments for Management Consultancy Service; however, separately compensated advisory or consultancy services provided by directors are taxable as management consultancy.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
