TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
Functional comparability governs software-service benchmarking: dissimilar companies are excluded, while related-party filters, margins and working-ca...
The CESTAT allowed the appeal, holding that payments made to a full-time director constitute salary and are not subject to service tax under Management Consultancy Service. The appellant failed to produce documentary evidence such as salary slips or Form-16 to conclusively prove the nature of payment; however, reliance was placed on established precedent that remuneration to whole-time directors is exempt from service tax due to the employer-employee relationship. The appellant had paid the disputed tax and interest promptly after issuance of the show cause notice, and the tribunal accepted the advocate's assertion that the payments were part of the director's salary. Consequently, the demand of service tax on these payments was set aside.
The CESTAT allowed the appeal, holding that payments made to a full-time director constitute salary and are not subject to service tax under Management Consultancy Service. The appellant failed to produce documentary evidence such as salary slips or Form-16 to conclusively prove the nature of payment; however, reliance was placed on established precedent that remuneration to whole-time directors is exempt from service tax due to the employer-employee relationship. The appellant had paid the disputed tax and interest promptly after issuance of the show cause notice, and the tribunal accepted the advocate's assertion that the payments were part of the director's salary. Consequently, the demand of service tax on these payments was set aside.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4830 
Join Channel 
