Service Tax on Commission paid to non-executive Directors?

By Vijay Kumar

We received a letter from a concerned Netizen,

I have read today’s DDT and also letter No. Dy.No.324/Comm (Service Tax)/ 2008 dated 01.12.2008 issued by the Commissioner (ST) clarifying that service tax would not be leviable on commission paid to the Directors of the Company.

The circular deals with commission to directors who are employees. What about commission being paid to other non-executive directors?

Please clarify.

Service Tax on Commission paid to non-executive Directors?

Can any enlightened Netizen clarify or shall we wait for the Board?