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TDS on sitting fees

TDS / TCS 8123 views 11 replies
Wherther Sitting fees paid to Directors is liable for TDS under Section 194J
Replies (11)
No its not a professional fees as per section 194J
TDS provision does not apply for sitting fees.
194j provides for TDS on professional services. Director fee shall be covered under professional service fee, since it is a specialised job and is normally done by professionals.
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Sitting fees paid to directors are not subject to TDS. directors are not employees of the Company adn further it is not always true to say that all the directors are professional and therefore 194J is applicable.

Hi Friends

Can anyone explain me regarding sitting fees.

thanks in advance

 

Directors sitting fees are neither covered under 194J or 193C. As per my knowledge it is  aRemuneration. All Companies are clubbing Sitting fees with Directors remunaration. 

 

 

it is not clarified in Companies Act and also in Income Tax Act.

Directors sitting fees are neither covered under 194J or 194C.

It is Remuneration and clubbing Sitting fees with the details of Directors remunaration in Notes to Accounts. 

 

 

Sitting fees paid to Non Executive directors are not subject to TDS. directors are not employees of the Company

and Sitting fee paid to Executive Directors is treated as Managerial Remunaration u/s 192 is applicable for TDS

Satheesh. B

9003022351

Sitting fees paid to Non Executive directors are not subject to TDS. directors are not employees of the Company

and Sitting fee paid to Executive Directors is treated as Managerial Remunaration u/s 192 is applicable for TDS

Satheesh. B

9003022351

Director May be a professional (when qualified) or a technical person. Under Companies act, Director is also a manager. Hence he is a technical person. So tax has to be deducted u/s194J.


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