TMI Blog2014 (1) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the demand for Service Tax can be made only on him and not on the appellant. Further, there is no evidence on record to show that the MD of the appellant firm rendered any consultancy/advisory services. He actually functioned as the MD of the other company also, therefore, the remuneration received by him through the appellant company does not come under the category of ‘Management Consultancy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to devote 20% of his time to the work of M/s. Brembo Brakes India Ltd. and for the remaining 80% of the time, he was required to work for the appellants. M/s. Brembo Brakes India Ltd. compensated Shri Sekhari for his work as MD and remuneration of Shri Sekhari was routed through the appellant and the payment received was credited to the account of Shri Sekhari without retaining any part thereof. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant submits that they have not rendered any Management Consultancy Services to M/s. Brembo Brakes India Ltd. Their MD was working in the same capacity on a part time basis for M/s. Brembo Brakes India Ltd. and he was required to be compensated. The compensation was routed through the appellant and on receipt of the same, they credited the entire amount to the account of the MD. This activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts made by Companies, to Directors cannot be termed as payments for providing management consultancy service. Therefore, it is clarified that the amount paid to Directors (Whole-time or Independent) is not chargeable to service tax under the category Management Consultancy service . However, in case such directors provide any advice or consultancy to the company, for which they are being compens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry services. He actually functioned as the MD of the other company also, therefore, the remuneration received by him through the appellant company does not come under the category of Management Consultancy Services in terms of the Board s Circular cited above. 6. Thus, the appeal succeeds and is allowed. The stay application is also disposed of. (Dictated and pronounced in Court) - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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