15 May 2014
Facts Ours is a Private limited Company we have 1 Managing Director & 9 other Directors, In our books of accounts we are showing them remuneration without bifurcation into commission or sitting fees etc. As far as the terms of appointments of these Directors are concerned nothing is specified about the amount of remuneration that will be paid to them. Query Currently we are deducting TDS u/s 192 on the total remuneration paid to the Directors, are we required to deduct the same u/s 194j? , and is the company required to pay service tax on the remuneration paid to the directors? Is it necessary to specify the amount of fix remuneration to be paid to the Directors in the terms of appointment of the Directors. Is it necessary to state the type of Director ie Whole time, executive, part time etc. in the appointment terms of the Directors? And also are there any formalities of filling these details with the ROC.
16 May 2014
On remuneration tds would be deducted u/s 192 just like salary, whereas on sitting fess it would be deducted u/s 194 J @ 10%. Further u will have to pay service tax on rcm basis on sitting fees.
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