TDS & Service tax
This query is : Resolved
22 September 2017
is there any limit for deduct TDS on directors remuneration ?
any exemption available under service tax for directors remuneration?
22 September 2017
TDS applicable if payment exceeds 2,50,000 and they are full time directors and TDS deducted u/s 192. In case of 194J deduction the limit is 30,000.
GST not service tax payable now in case of payment to 194J TDS cases.
GST not service tax payable now in case of payment to 194J TDS cases.
22 September 2017
Dear Sir,
Deduction limit (i.e. 30,000)not available for TDS deduction u/s. 194J for directors remuneration.
Deduction limit (i.e. 30,000)not available for TDS deduction u/s. 194J for directors remuneration.
Message likes :
1 times
25 September 2017
sir
any deduction is available in case of service tax?
28 July 2025
Here’s the clear picture regarding **TDS and service tax on directors’ remuneration**:
---
### 1. **TDS on Directors’ Remuneration**
* **Section 192** applies to **salary payments**, including remuneration to directors who are employees or whole-time directors.
* **TDS under Section 192** is deducted based on **salary slabs**, and no specific threshold like ₹30,000 applies here.
* For **other directors** (non-executive or independent directors), payments are usually considered **fees for professional services** and fall under **Section 194J**.
* Under **Section 194J**, TDS is deductible if payment exceeds **₹30,000** in a financial year.
* So:
* **Whole-time directors:** TDS under Section 192, no minimum threshold.
* **Non-executive directors:** TDS under Section 194J, threshold of ₹30,000.
---
### 2. **Service Tax / GST on Directors’ Remuneration**
* **Service Tax** (pre-GST regime) was **not applicable** on directors' remuneration because these payments are considered part of salary or professional fees, not services attracting service tax.
* Post GST rollout:
* GST is applicable on fees paid to non-executive directors as they are considered professionals providing services.
* GST is **not applicable** on salary paid to whole-time directors (as salary is outside the scope of GST).
* Hence, for **non-executive directors**, GST is applicable on the fee amount.
* For **whole-time directors’ salary**, no GST/service tax is levied.
---
### 3. **Is there any exemption?**
* No specific **service tax exemption** on directors’ remuneration because remuneration is either salary (exempt) or professional fees (service tax applicable on fees, GST applicable now).
* Under GST, if fees to non-executive directors is below ₹20 lakh per annum (threshold for registration), GST may not be applicable.
---
### Summary Table:
| Payment Type | TDS Section | TDS Threshold | Service Tax / GST Applicability |
| --------------------------- | ----------- | ------------- | ----------------------------------------- |
| Whole-time Director Salary | 192 | No minimum | No service tax/GST (salary not taxable) |
| Non-executive Director Fees | 194J | ₹30,000 | Service tax (before GST) / GST applicable |
---
If you want, I can help you with exact TDS calculation or GST entries. Would you like that?
---
### 1. **TDS on Directors’ Remuneration**
* **Section 192** applies to **salary payments**, including remuneration to directors who are employees or whole-time directors.
* **TDS under Section 192** is deducted based on **salary slabs**, and no specific threshold like ₹30,000 applies here.
* For **other directors** (non-executive or independent directors), payments are usually considered **fees for professional services** and fall under **Section 194J**.
* Under **Section 194J**, TDS is deductible if payment exceeds **₹30,000** in a financial year.
* So:
* **Whole-time directors:** TDS under Section 192, no minimum threshold.
* **Non-executive directors:** TDS under Section 194J, threshold of ₹30,000.
---
### 2. **Service Tax / GST on Directors’ Remuneration**
* **Service Tax** (pre-GST regime) was **not applicable** on directors' remuneration because these payments are considered part of salary or professional fees, not services attracting service tax.
* Post GST rollout:
* GST is applicable on fees paid to non-executive directors as they are considered professionals providing services.
* GST is **not applicable** on salary paid to whole-time directors (as salary is outside the scope of GST).
* Hence, for **non-executive directors**, GST is applicable on the fee amount.
* For **whole-time directors’ salary**, no GST/service tax is levied.
---
### 3. **Is there any exemption?**
* No specific **service tax exemption** on directors’ remuneration because remuneration is either salary (exempt) or professional fees (service tax applicable on fees, GST applicable now).
* Under GST, if fees to non-executive directors is below ₹20 lakh per annum (threshold for registration), GST may not be applicable.
---
### Summary Table:
| Payment Type | TDS Section | TDS Threshold | Service Tax / GST Applicability |
| --------------------------- | ----------- | ------------- | ----------------------------------------- |
| Whole-time Director Salary | 192 | No minimum | No service tax/GST (salary not taxable) |
| Non-executive Director Fees | 194J | ₹30,000 | Service tax (before GST) / GST applicable |
---
If you want, I can help you with exact TDS calculation or GST entries. Would you like that?
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