Income tax/ service tax

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ARUN KUMAR MAITRA (Querist)
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06 July 2012 Whether TDS u/s 194 J and/or Service Tax is/are payable on Directors Remunerations including his salary and sitting fees/Commissions.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 July 2012 Directors's remuneration shall be bifurcated into salary and other remuneration.

TDS on salary shall be deducted u/s 192 and on other allowances u/s 194J.

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ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Querist)
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07 July 2012
Dear Bharwadraj,

Your interpretation seems to be correct.But I have still some doubt.

Services rendred in professional capacity will be taxed as income in the hands of directors,the sitting fee and commission paid will be taxed under the head "Income from Other Sources".

Section 194J(1)(ba) indicates that if remuneration paid is covered u/s 192,this clause is not applicable.If TDS is not made u/s 192, it has to be invariably covered under 194 J.

In view of the above provisions, will it be possible to bifercate the two.

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Querist)
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07 July 2012 If directors remuneration exceed the limit u/s 44AB i.e. Rs. 25 Lacs Rupees,whether they will be liable fot tax-audit in their individual capacity?

Whether services rendered by directors to the company comes in the net of service tax?

If the directors remuneration exceed the threshold limit of service tax,then whether they will be liable to service tax?

Whether directors will be liable to pay income tax as well as service tax for the same remuneration?

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