https://www.taxtmi.com/caselaws?id=759305 CESTAT Ahmedabad held that service tax under reverse charge mechanism was not leviable on commission paid to Directors treated as salary in company books. The tribunal ruled that services provided by Directors as employees fall outside the definition of "service" under Section 65B(44)(b) of Finance Act, 1994, as these constitute employer-employee relationships. The payment was booked as salary with TDS deducted under Section 192 of Income Tax Act, supporting employment status. CBEC Circular No. 115/9/2009-ST clarified such Director commissions don't constitute Business Auxiliary Service. The impugned order was set aside and appeal allowed. en-us Thu, 26 Sep 2024 00:00:00 +0530 Mon, 11 May 2026 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759305 CESTAT Ahmedabad held that service tax under reverse charge mechanism was not leviable on commission paid to Directors treated as salary in company books. The tribunal ruled that services provided by Directors as employees fall outside the definition of "service" under Section 65B(44)(b) of Finance Act, 1994, as these constitute employer-employee relationships. The payment was booked as salary with TDS deducted under Section 192 of Income Tax Act, supporting employment status. CBEC Circular No. 115/9/2009-ST clarified such Director commissions don't constitute Business Auxiliary Service. The impugned order was set aside and appeal allowed. Case-Laws Service Tax Thu, 26 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759305