TaxTMI 
TaxTMI 
2026 (1) TMI 1290
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....n paid by the appellant to Smt. T. R. Amin, Whole time Director of the company. The dispute pertains to period from October2015 to June-2017, during which Smt. T. R. Amin were paid an amount of Rs.89,77,500/- on which service tax of Rs.13,30,501/-was demanded from the appellant. 1.1 The appellant was issued a show cause notice dated 07.03.2018 demanding service tax of Rs.13,30,501/-under Section 73(1) of the Finance Act,1994 along with interest under Section 75 and penalty under Section 76 and 77 of the said Act. The said show cause notice was decided by the Adjudicating Authority vide order dated 30.12.2019 wherein, he confirmed the entire service tax demand against the appellant along with interest and also imposed an equal penalty und....
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....ΑΧΜΑΝ 502 (CAL)-SAJID MOWJEE Vs. INCOME TAX OFFICER, WARD NO., 10(3). 2. COMMISSIONER OF INCOME-TAX VERSUS M.S.P. RAJES * The Remuneration, paid to the Whole Time Director or Managing Director, is to be treated as Salary and if, it is treated as Salary, the nature of duty, specified in case of the Appellants, to be performed by their Whole Time Director, which is visible through the Agreement, entered into between the Company and the said Whole Time Director, will reveal that she is an Employee of the Company. 3. During hearing, learned Advocate highlighted that the remuneration paid to Smt. T.R. Amin by the company was of the nature of employee. To prove the point, copy of the Special Resolution p....
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....tals and Tubes Ltd wherein relying on various judgments, this Tribunal has passed following order:- "4. We have carefully considered the submissions made by both the parties and perused the records. We find that the issue involved in the present appeal is whether service tax should be levied on the remuneration paid by the Appellant to its directors under reverse charge mechanism or not. In the light of the records submitted by the Appellants, in terms of Board Resolution and Income tax returns submitted under Form - 16, we are of the considered view that the Directors have been appointed as employees of the Appellant's Company. We find that the matter is no longer res- integra as the same has already been deliberated upon and deci....
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.... provisions of the Companies Act, is pursuant to employer-employee relationship and the mere fact that the wholetime Director is compensated by way of variable pay will not in any manner alter or dilute the position of employer-employee status between the company assessee and the whole-time Director. We are thoroughly convinced that when the very provisions of the Companies Act make whole-time director (as also in capacity of key managerial personnel) responsible for any default/offences, it leads to the conclusion that those directors are employees of the assessee company. 9. Further, the judgment of this Tribunal in the case of MAITHAN ALLOYS LTD Versus COMMISSIONER OF C. EX. & S.T., BOLPUR (supra) is squarely applicable to the f....
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....rectors are in the nature of the salary paid to them, since the said Directors are whole time directors and employees of the company, accordingly, it is not a 'service' within the definition of 'service' prescribed under Section 65B(44) of the Finance Act, 1994. ....16. Also, from the documents produced by the appellant it is crystal clear that the Directors who are concerned with the management of the company, were declared to all statutory authorities as employees of the company and complied with the provisions of the respective Acts, Rules and Regulations indicating the Director as an employee of the company. No contrary evidence has been brought on record by the Revenue to show that the Directors, who were employee of the appel....