Service tax applicability on retainership paid to ex employe

an employee of the company after retirement is apponted as consultant  and paid monthly retainership . he is also an authorised signatory for the company for signing cheques etc . he is looking after the commercial function of the company ans is attending the office on  full time basis .

service tax is applicable or not .

if applicable who will pay service receiver under rcm or service provider .

tds is deucted under 194j @ 10%