applicability of service tax on commission paid to Whole time directors.

Remunerations paid to Managing Director / Directors of companies whether whole-time or independent when being compensated for their performance as Managing Director/Directors would not be liable to service tax.

The services aprovided by the whole time directors can not be considered as Business Auxilary services and hence service tax is not applicable.

The whole time directors are a part of Management and they do not act as consultants or advisors hence can not be termed as Business Auxilary services.