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

Others 536 views 6 replies
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.
Replies (6)

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

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).

Yes.

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.
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
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 


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