https://www.taxtmi.com/caselaws?id=760743 CESTAT Ahmedabad held that director's remuneration in the form of commission based on company profits is not liable to service tax under reverse charge mechanism. The tribunal found that amounts paid to directors as remuneration for their directorial duties, whether as salary or profit-based commission with TDS deducted, do not attract service tax liability. Following precedent in Alchemie Organics case, the tribunal clarified that compensation to managing directors/directors for their directorial performance is exempt from service tax. The impugned order was set aside and appeals allowed. en-us Tue, 22 Oct 2024 00:00:00 +0530 Fri, 25 Oct 2024 11:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760743 CESTAT Ahmedabad held that director's remuneration in the form of commission based on company profits is not liable to service tax under reverse charge mechanism. The tribunal found that amounts paid to directors as remuneration for their directorial duties, whether as salary or profit-based commission with TDS deducted, do not attract service tax liability. Following precedent in Alchemie Organics case, the tribunal clarified that compensation to managing directors/directors for their directorial performance is exempt from service tax. The impugned order was set aside and appeals allowed. Case-Laws Service Tax Tue, 22 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760743