Remuneration to Director: Reverse Charge (RCM) - VCMD as employee not service provider. Key managerial person under Companies Act.

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....The case involved the levy of service tax on remuneration to the Vice-Chairman cum Managing Director (VCMD). The issue was whether the VCMD was an employee of the company or providing services to it. The Appellate Tribunal held that the VCMD, appointed by the Board, was considered a key managerial person under the Companies Act, 2013. As a Managing Director, he was an employee of the company, entitled to remuneration and commission. His role as Managing Director did not fall under the definition of "service" for tax purposes. The Tribunal set aside the order, allowing the appeal.....