Sitting Fees Paid to Non-Employed Director Not Amounts to Salary, Liable to Service Tax: CESTAT

The CESTAT ruled that sitting fees paid to non-employed directors do not constitute salary and are, therefore, liable to service tax. The issue revolved around whether such fees should be classified as salary under service tax laws. The Tribunal clarified that since the directors are not employees, their remuneration is subject to service tax, offering guidance on how service tax applies to directors' compensation.