https://www.taxtmi.com/caselaws?id=775823 The CESTAT Chennai held that remuneration paid to whole-time directors of the appellant company constitutes salary subject to TDS under the Income Tax Act, establishing an employer-employee relationship. Consequently, such payments are excluded from service tax liability under the reverse charge mechanism. The Tribunal recognized whole-time directors as key managerial personnel and officers in default under the Companies Act, reinforcing their employee status. The demand for service tax and penalties on director remuneration was set aside, relying on precedents that exclude whole-time directors' remuneration from service tax when functioning as employees. The appeal was allowed. en-us Wed, 30 Jul 2025 00:00:00 +0530 Thu, 31 Jul 2025 11:24:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775823 The CESTAT Chennai held that remuneration paid to whole-time directors of the appellant company constitutes salary subject to TDS under the Income Tax Act, establishing an employer-employee relationship. Consequently, such payments are excluded from service tax liability under the reverse charge mechanism. The Tribunal recognized whole-time directors as key managerial personnel and officers in default under the Companies Act, reinforcing their employee status. The demand for service tax and penalties on director remuneration was set aside, relying on precedents that exclude whole-time directors' remuneration from service tax when functioning as employees. The appeal was allowed. Case-Laws Service Tax Wed, 30 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775823