Tds on director's remuneration
Querist : Anonymous
We are paying remuneration Re. five thousand per month is tds deductible.
Please reply
Querist : Anonymous
Querist : Anonymous
Here's a breakdown of the points you mentioned:
### 1. **TDS on Director's Remuneration**
* **TDS Applicability**: TDS is generally applicable to payments made to a director if the total remuneration paid is above the prescribed limit under the Income Tax Act, 1961. If the remuneration is ₹5,000 per month, i.e., ₹60,000 per year, TDS is not applicable as it falls below the threshold limit.
### 2. **Service Tax on Director's Remuneration**
* **Service Tax (Post-July 1, 2012)**: As per the new provisions of Service Tax under the Reverse Charge Mechanism (RCM) from July 1, 2012, if a company receives services from its directors, it is liable to pay service tax under the reverse charge mechanism (RCM).
* However, **Full-time Directors**: Generally, full-time directors (who are also employees of the company) are **not considered taxable persons** for the purpose of service tax because their services are part of employment, and service tax doesn't apply to employee-employer relationships. This would mean that the company should not charge service tax on remuneration paid to a full-time director.
### 3. **Event Management Services**
* If you're providing event management services and charging service tax for those services, the provisions of Service Tax would apply to the event services provided, not necessarily to the director's remuneration (assuming the director is a full-time employee).
### Conclusion:
* **TDS**: No TDS for remuneration of ₹60,000 per year as it is below the prescribed limit.
* **Service Tax**: If the director is a full-time employee, service tax is generally **not applicable** on the director's remuneration under the reverse charge mechanism, as the relationship is considered an employer-employee relationship.
Click here to login now
Similar Resolved Queries
- Notice from IT DEPTT IF FD AMOUNT EXCEEDS 10 LACS
- Unable to generate and save json file for updated return
- GST payable under RCM
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Section 194I not showing in TDS RPU for Compnay Assessee for TDS on rent
- Inverted Tax Structure & Unutilized ITC on Services
- Regarding TDS not deducted on rent
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- GSTR9- ITC
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
