Director sitting fee

This query is : Resolved

CA Pramod Jain (Querist)
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04 January 2013 If we are paying 1000/- cheque to non-excutive directors as director sitting fees.

at what rate n on what amount service tax needs to be paid by company, means whether (1000*12.36%) 112.36 Service tax liability of company or else. and under what head service needs to be paid.

Also TDS on which amount needs to be deducted on Rs.1000/- or Rs.1112/- inclusive of service tax.

pl confirm

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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08 January 2013 Service to be applied on gross sitting fee. Thus Rs 112.36. TDS should be applied on payment i.e. Rs 1000/-..

Hope this would settle the issue...