Remuneration paid to Whole-Time Directors of Company in the form of Commission based on Profit constitutes an Employer-Employee Relationship, No Service Tax Applicable: CESTAT [Read Order]

Remuneration - Whole-Time Directors of Company - Commission - Profit - CESTAT - Service Tax - taxscan

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), West Zonal Bench at Ahmedabad has held that the remuneration paid to whole-time directors of a company in the form of a commission based on profit constitutes an employer-employee relationship, thereby exempting it from service tax. The ruling came in response to the Service Tax Appeal…

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