Tribunal Rules Director Commissions Exempt from Service Tax Under Reverse Charge Mechanism.

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the commission paid by a company to its Managing Director and Executive Director, in addition to their salary, is not subject to service tax under the reverse charge mechanism. This decision is based on Sr. No. 5A of Notification No. 30/2012-ST, as amended by Notification No. 45/2012. The Tribunal referenced its earlier ruling in the company's case, confirming that such commissions do not qualify as Business Auxiliary Service. Consequently, the previous order was overturned, favoring the company. .....

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