Contract of Service vs. Contract for Service: Ram Pershad v. CIT (1972)|Employment Law under Tax law

⚖️ IS A MANAGING DIRECTOR A SERVANT OR AN AGENT? LANDMARK CASE

If a Managing Director gets a "Commission" on profits, is it Salary (Employment) or Business Income (Professional Fee)? This video breaks down the famous Ram Pershad v. C.I.T. (1972) Supreme Court judgment—the gold standard for distinguishing between a "Master-Servant" relationship and an "Independent Agent".
​👨‍⚖️ THE CASE IN A NUTSHELL:
Ram Pershad, the MD of a hotel company, received a fixed salary + 10% commission on profits. He gave up the commission to help the company but claimed it was "Business Income" to avoid tax. The Tax Department said it was "Salary" because he was an employee. Who won? The answer defines Employment Law in India, UK, and beyond.
​🌍 WHY WATCH THIS?
​For Law Students: Master the "Control and Supervision" Test.
​For HR & Corporate Pros: Understand the Dual Capacity Doctrine (Director vs. Employee).
​For Global Viewers: Learn the difference between Contract OF Service vs. Contract FOR Service.
​📚 KEY CONCEPTS COVERED:
​Section 7 vs. Section 10: Salary vs. Business Profits.
​The Control Test: Does the Board control the MD?
​Dual Capacity Doctrine: Can you be a Director AND a Servant?
​Anderson v. James Sutherland: The Scottish Precedent.
​👇 TIME STAMPS (Jump to section):
00:00 - Introduction: The MD's Salary Dilemma
00:55 - Facts of the Case: Salary + Commission Agreement
02:15 - The Legal Argument: "I am an Agent, Not a Servant!"
03:00 - Master-Servant Relationship: The "Control Test"
04:20 - Dual Capacity Doctrine: Director & Employee Roles
05:30 - "Contract OF Service" vs. "Contract FOR Service"
06:30 - Legal Precedents: Pyarelal Adheshwar Lal Case
07:20 - The "Articles of Association" Evidence
08:30 - Final Verdict: Why the MD is a "Servant"
09:10 - Conclusion: The Future of Gig Economy & Employment Law
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