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Shreya Ladia

Shreya Ladia (Querist)
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10 July 2016 please explain tds provision on director's remuneration.

CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Expert)
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10 July 2016 As per Sec 194J(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, tax shall be deducted on such payment @ 10%. Payment under this section can be bifurcated in to two parts: a. By way of salary. b.By way of fees paid for the professional services. If the payments are made under the capacity of employer employee relation, then provisions of sec.192 are attracted. Generally the executive directors are paid salary and they are not entitled to sitting fees or for other services. Directors remuneration also includes payments made to Directors for services rendered in any other capacity as per the Companies Act like commission, sitting fees and any other fees paid for rendering professional services, then such payments will come under sec 194J.

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