https://www.taxtmi.com/article/detailed?id=5353 Payments to working partners characterized as remuneration are in substance a distribution of profit rather than salary. Partnership law treats the firm and partners not as separate legal persons, and a contract of service between a firm and its partner is conceptually inconsistent. The statutory definition of service requires an activity for consideration provided by one person to another but excludes a transaction in money; accordingly remuneration that is effectively profit distribution falls outside the definition of taxable service. en-us Sat, 16 Nov 2013 11:31:21 +0530 Sat, 16 Nov 2013 11:31:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5353 Payments to working partners characterized as remuneration are in substance a distribution of profit rather than salary. Partnership law treats the firm and partners not as separate legal persons, and a contract of service between a firm and its partner is conceptually inconsistent. The statutory definition of service requires an activity for consideration provided by one person to another but excludes a transaction in money; accordingly remuneration that is effectively profit distribution falls outside the definition of taxable service. Articles Service Tax Sat, 16 Nov 2013 11:31:21 +0530 https://www.taxtmi.com/article/detailed?id=5353