9911796707
TMI Blog2025 (3) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is also registered under Service Tax for provision of taxable services and for paying Service Tax including reverse charge mechanism (RCM) for the services received. The appellant, being a listed public limited company, has appointed directors, executives and non-executives in accordance with the provisions of Companies Act, 2013 as applicable during the relevant period i.e., April 2013 to June 2017. In terms of Section 65B(44) read with section 68(2) of the Finance Act and Notification No.30/2012-ST dt.20.06.2012 for the services received from directors, the appellant is liable to discharge service tax under RCM. Therefore, the appellant has been discharging service tax on the sitting fees and other amount paid to the independen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her Director, who is in the whole time employment of the Company, may be paid remuneration either by way of monthly payment or at a specified percentage of the net profit of the Company or partly by one way and partly by the other. He has highlighter Article 57, which specifies that the Managing Director or the whole time director or executive director, so appointed, shall be responsible for and in charge of the day to day management and affairs of the Company. Further, in terms of Article 58, a Managing Director or whole time director shall be subject to the same provisions as to resignation and removal as the other directors of the Company and as per Article 60, the exercise of power and duties of Managing Director/ whole time director wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 910 - CESTAT Ahmedabad] e) Espic Consulting P Ltd Vs GST, Indore [2019 (4) TMI 904 - CESTAT Delhi] f) Maithan Alloys Ltd Vs CCE [2020 (33) GSTL 228 (Tri-Kol)] g) Bengal Beverages Vs CCE [2020 (11) TMI 622 - CESTAT Kolkata] h) NRB Industrial Bearing Vs CCE [2019 (8) TMI 600 - CESTAT Mumbai] 5. He is also relying on General Circular No. 24/2012 dt.09.08.2012 issued by the Ministry of Corporate Affairs (MCA) on the issue of managerial remuneration, wherein, it was clarified a follows:- "The Finance Act, 2012 has introduced Service Tax which is applicable to anyone who provides a service not covered under the negative/exempted list and if the value of the annual revenue is more than Rs.10 lakh. The non-whole time directors of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so happened to be shareholder/promoter, this Bench has dealt with the issue in the case of Amara Raja Batteries (supra). The Adjudicating Authority has mainly contested that there is no employer and employee relationship between the company and whole time director/promoter. Apparently, the Adjudicating Authority has felt that in the absence of any contract or agreement between the Managing Director and the Company to hire or fire, the consideration paid cannot be treated as salary and that it is a settled legal position that the payment of Income Tax and Provident Fund does not absolve the charge of service tax. 10. We find that the issue of leviability of service tax on Chairman/ Vice Chairman cum Managing Director/ whole time executive d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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