https://www.taxtmi.com/caselaws?id=759356 The CESTAT Ahmedabad held that service tax under reverse charge mechanism does not apply to rent paid by a company to its directors for leased premises. The tribunal distinguished between services provided by directors in their official capacity versus individual capacity. Since the directors owned the property individually and not as directors, the rental transaction was in personal capacity. The tribunal followed precedent from Cords Cable Industries case, ruling that mere directorship status doesn't convert individual property transactions into director services. The appeal was allowed and the impugned order was set aside. en-us Fri, 27 Sep 2024 00:00:00 +0530 Mon, 30 Sep 2024 13:45:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759356 The CESTAT Ahmedabad held that service tax under reverse charge mechanism does not apply to rent paid by a company to its directors for leased premises. The tribunal distinguished between services provided by directors in their official capacity versus individual capacity. Since the directors owned the property individually and not as directors, the rental transaction was in personal capacity. The tribunal followed precedent from Cords Cable Industries case, ruling that mere directorship status doesn't convert individual property transactions into director services. The appeal was allowed and the impugned order was set aside. Case-Laws Service Tax Fri, 27 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759356