Rent to Directors Exempt from Service Tax Under RCM: CESTAT Delhi

PSV Polymers Pvt Ltd Vs Commissioner of Central GST and Central Excise (CESTAT Delhi) Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi has set aside a service tax demand, along with interest and penalties, against PSV Polymers Pvt Ltd. The ruling addressed two key issues: service tax on commission paid to foreign agents for export orders and service tax on rent paid to the company’s directors for godowns. The Tribunal’s decision was largely based on the principle of revenue neutrality and the capacity in which services were rendered. The appellant, PSV Polymers Pv...