https://www.taxtmi.com/caselaws?id=767579 CESTAT Hyderabad ruled that remuneration paid to whole-time directors/promoters is not liable to service tax under reverse charge mechanism when treated as salary for income tax purposes. The tribunal distinguished between whole-time directors engaged in key managerial functions (considered employees) and independent/non-executive directors providing advisory services. Since the company treated payments as salary, deducted provident fund, and paid income tax accordingly, service tax liability was not applicable. The appeal was allowed, following precedent from Amara Raja Batteries case. en-us Fri, 07 Mar 2025 00:00:00 +0530 Fri, 21 Mar 2025 08:25:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767579 CESTAT Hyderabad ruled that remuneration paid to whole-time directors/promoters is not liable to service tax under reverse charge mechanism when treated as salary for income tax purposes. The tribunal distinguished between whole-time directors engaged in key managerial functions (considered employees) and independent/non-executive directors providing advisory services. Since the company treated payments as salary, deducted provident fund, and paid income tax accordingly, service tax liability was not applicable. The appeal was allowed, following precedent from Amara Raja Batteries case. Case-Laws Service Tax Fri, 07 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767579