Reg : director sitting fees

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anshul jain (Querist)
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28 May 2012 In value added statements, whether director sitting fees is treated as an application towards director or expense to a company? suggest with appropriate reason.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 May 2012 Treated as application towards management.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 May 2012 Treated as application towards management.

anshul jain

anshul jain (Querist)
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28 May 2012 give appropriate reason sir

anshul jain

anshul jain (Querist)
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28 May 2012 give appropriate reason sir

anshul jain

anshul jain (Querist)
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28 May 2012 give appropriate reason sir

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Director sitting fees in value added statements should be treated as an expense to the company, not as an application towards the director.

Reason:
Director sitting fees is a remuneration paid to directors for attending meetings, which is a business expense incurred by the company.
It is not a capital contribution or application money towards the company.
In value added statements, expenses related to management and administration, including director fees, are deducted to arrive at the value added by the company.
So, director sitting fees = expense incurred for management services, reducing the company’s value added.

If the question is about treatment in value added statements, it should be shown under expenses and not as application money.

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