https://www.taxtmi.com/caselaws?id=771900 CESTAT Chennai set aside service tax demand on remuneration paid to whole-time directors. The tribunal held that where director remuneration is treated as salary subject to TDS under Income Tax Act, an employer-employee relationship is established, excluding such payments from service tax purview under Section 65B(44) of Finance Act 1994. The department's contention that director services constitute taxable services under negative list regime was rejected. Following precedent in Dixcy Textiles case, both service tax demand and penalties were set aside, allowing the appeal with consequential relief. en-us Fri, 30 May 2025 00:00:00 +0530 Mon, 02 Jun 2025 08:34:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771900 CESTAT Chennai set aside service tax demand on remuneration paid to whole-time directors. The tribunal held that where director remuneration is treated as salary subject to TDS under Income Tax Act, an employer-employee relationship is established, excluding such payments from service tax purview under Section 65B(44) of Finance Act 1994. The department's contention that director services constitute taxable services under negative list regime was rejected. Following precedent in Dixcy Textiles case, both service tax demand and penalties were set aside, allowing the appeal with consequential relief. Case-Laws Service Tax Fri, 30 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771900