07 May 2015
Whole time directors and Managing Directors of the companies are considered as employees of the company in which they are directors. The definition of service itself excludes services provided by the employees to employers. Hence, there is no service tax in respect of such employee directors. Service tax will apply only in case of non employee directors.
How shall I know that someone is Managing Director or wholetime director? From which document of the company it can be learnt that Mr.A is MD or Wholetime Director?