Remuneration paid to Whole-Time Directors is ‘Salary’ & not liable to service tax

Agni Steels Pvt. Ltd. Vs Commissioner of GST and Central Excise (CESTAT Chennai) Conclusion: Demand of service tax on remuneration paid to the Chairman and Directors was unsustainable as remuneration paid to the Directors constituted “salary” under an employer–employee relationship and was therefore not eligible to service tax. Held: Appellant had challenged an Order-in-Original confirming demand of service tax, interest and penalty under the reverse charge mechanism (RCM) on remuneration paid to its chairman and two Directors for the period 07.08.2012 to 31.03.2014. Department alleged t...