Service tax on commission paid to Managing Director/ Directors by the company -reg

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.... Central Board of Excise and Customs *** New Delhi, 31st July 2009 Subject: Service tax on commission paid to Managing Director / Directors by the company -reg ********** Below mentioned issues have been referred to the Board seeking clarifications,- (i) applicability of service tax under 'Business Auxiliary service' on commission paid to Managing Director / Directors (whole tim....

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....nd they do not perform consultancy or advisory function. The definition of management consultant service makes it clear that what is envisaged from a consultant is advisory service and not the actual performance of the management function. The payments made by Companies, to Directors cannot be termed as payments for providing management consultancy service. Therefore, it is clarified that the amou....