Is sitting fees to Directors liable to TDS. If so undere profession or salary
Deepak Jain Now CA + CS (AM in TCS CA, CS) (362 Points)
11 February 2009Is sitting fees to Directors liable to TDS. If so undere profession or salary
Pranay Shukla
(CA)
(52 Points)
Replied 11 February 2009
Hi Deepak,
Directors are not employee of the company except whole time and managing director. While considering remunaration for the director for the sitting fees, it is purly for the technical assistance to the company. So TDS would be charge on the sitting but not as salary.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 11 February 2009
TDS is chargeable as Technical / professional Fees at the rates applicable
Abhinav Agarwal
(M.Com C.A SAP Consultant)
(814 Points)
Replied 12 February 2009
It should be u/s 194 J
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 12 February 2009
A director is also a manager under the provisions of the Companies Act, 1956. He is therefore, technical personnel. Hence, any payment other than payment of directors’ remuneration to such director (may be it a sitting fees or any other sum) shall be required to be taken into consideration for TDS purpose u/s.194J. Directors’ remuneration is subject to TDS u/s.192.
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