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Can a director be given professional consultancy charges without paying him salary.

24 January 2019

Can the director who recieved salary for several months be given proffessional charges (not director remuneration but those professional consultancy charges which will be given for any outside proffessionals or consultants) for later period in a financial year.

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6 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 25 January 2019

Remuneration payment to director is matter of decision by company and shareholders however a director can be given professional charges.

Lokesh Sagar Gouni (62 Points)
Replied 25 January 2019

So companoes can avoid GST RCM by this way and TDS will be under sec 194j i.e....may be at a lower rate compared to tds under sec 192 (in case salary is paid).

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 25 January 2019

Yes.

Aditya SHARMA (20 Points)
Replied 25 January 2019

Professional charges are given based on the type professional services received from director.
If the director is professionally qualified and providing the same professional services to company then payment made can be considered as professional services and provisions of 194J will be applicable if the payment exceed 30000 during the year. In any other case the payment to director will be treated as salary.

Vinod lalwani (28 Points)
Replied 25 January 2019

First director is required to gst consent of BOD under section 188 of companies act as related party transaction and if exceeds 50 CR then company prior approval also thru speical resolution, then only he can get the payment

shashank kumar (73 Points)
Replied 03 February 2019

Can anybody tell the how to file a revised return of professional tax return of telangana?? Please tell the process if anybody now Please tell this , this urgent to Please as soon as possible