Can anyone help me to know whether Rs. 20,000/- Sitting fees paid to the Non Executive Directors which id the Maximum Limitas per the Companies Act, 1956 is inclusive of Service Tax or not.
plz let me know if you can provide or suggest some supportings for the same.
the querry was actually because as per our articles the sitting fees payable is Rs. 20,000/- but but when it is actually paid to Directors it comes to rs,18,000/- (approx) after deducting taxes.
Generally the company book under the heading of sitting fee Rs. 20,000 out of which they paid tax. My answer is that what you have mentioned your book entry as Rs. 18000 or Rs. 20000.
I have no case law, it is a general interpretation of your case.