Remuneration Paid to Directors Is in Nature of Salary Excluded from Service Definition — CESTAT

In a key ruling, CESTAT held remuneration paid to company directors constitutes salary and hence, is excluded from the definition of ‘service’ liable for service tax or GST. The judgment helps clarify tax liabilities on directors' compensation and removes ambiguity affecting accounting and tax compliance. This supports better tax treatment aligning with income tax definitions and corporate governance norms.