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2021 (5) TMI 832 - AT - Service TaxLevy of service tax - remuneration paid by a company to the Managing Director and the whole time Executive Director - salaries or not - Managing Director and whole time Executive Director of the appellant company - employees or not - scope of Service under section 65B(44) of the Finance Act, 1994 - HELD THAT:- The Learned Commissioner despite the submission of the appellants that the remuneration paid by the appellants to the managing director and the executive director of the company was shown as “Salary” and declared in Form- 16 which is a income tax return for the salary income decided that the remuneration paid is not a salary but directors remuneration. Therefore, the same is liable to service tax in the hands of the appellant - though in the Income tax return the remuneration was declared as salary income but it is a self declaration. However, whether such income is a salary income or otherwise the same can be established on the basis of employment conditions for employment of directors as company’s employees. In the entire proceedings the appellant have not produced the appointment order of the directors as employees containing the terms and conditions of the employment. The matter needs to be reconsidered taking into account not only the position of income tax but also on the basis of terms and conditions of the employment - appeal allowed by way of remand.
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