https://www.taxtmi.com/caselaws?id=450229 CESTAT Ahmedabad held that service tax under reverse charge mechanism was not applicable on remuneration paid to directors. The tribunal determined that directors, appointed through board resolution and treated as employees per income tax returns, maintained employer-employee relationship with the company. Following precedent from Bengal Beverages case, the tribunal concluded that whole-time directors are essentially company employees, and remuneration paid under Companies Act provisions constitutes employer-employee compensation. The impugned order was set aside and appeal allowed, establishing that director remuneration does not attract service tax liability. en-us Mon, 26 Feb 2024 00:00:00 +0530 Mon, 11 May 2026 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450229 CESTAT Ahmedabad held that service tax under reverse charge mechanism was not applicable on remuneration paid to directors. The tribunal determined that directors, appointed through board resolution and treated as employees per income tax returns, maintained employer-employee relationship with the company. Following precedent from Bengal Beverages case, the tribunal concluded that whole-time directors are essentially company employees, and remuneration paid under Companies Act provisions constitutes employer-employee compensation. The impugned order was set aside and appeal allowed, establishing that director remuneration does not attract service tax liability. Case-Laws Service Tax Mon, 26 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450229