Fair-rent assessment requires consideration of lease terms, valuation principles and prevailing market rent; the certificate was quashed for fresh rev...
Document Identification Number compliance is satisfied when electronically communicated orders are promptly authenticated through a correctly identifi...
Industrial shrimp-feed machinery classification follows its commercial function, placing integrated production plants under the specific industrial fo...
The director's remuneration in the form of commission based on a percentage of the company's total profit is not subject to service tax under the reverse charge mechanism. The amounts paid as salary and the TDS deducted under the salary head are not in dispute. Any amount paid to the director as remuneration, including commission from the company's profit, is not chargeable to service tax under the reverse charge basis, as established in the case of ALCHEMIE ORGANICS VERSUS C.C.E & S.T. -VALSAD [2024 (6) TMI 1413 - CESTAT AHMEDABAD]. The CESTAT clarified that remunerations paid to Managing Directors/Directors, whether whole-time or independent, when compensated for their performance, would not be liable to service tax. Consequently, it is settled law that any commission from the company's profit paid to the director as remuneration is not liable to service tax under the reverse charge basis. The impugned order is unsustainable and is set aside, and the appeals are allowed.
The director's remuneration in the form of commission based on a percentage of the company's total profit is not subject to service tax under the reverse charge mechanism. The amounts paid as salary and the TDS deducted under the salary head are not in dispute. Any amount paid to the director as remuneration, including commission from the company's profit, is not chargeable to service tax under the reverse charge basis, as established in the case of ALCHEMIE ORGANICS VERSUS C.C.E & S.T. -VALSAD [2024 (6) TMI 1413 - CESTAT AHMEDABAD]. The CESTAT clarified that remunerations paid to Managing Directors/Directors, whether whole-time or independent, when compensated for their performance, would not be liable to service tax. Consequently, it is settled law that any commission from the company's profit paid to the director as remuneration is not liable to service tax under the reverse charge basis. The impugned order is unsustainable and is set aside, and the appeals are allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
