TDS
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 June 2010
Director meeting fee are attract provision of tds or not?
22 June 2010
no Sitting fee not subject to TDS
22 June 2010
Section 194J Provides as under for deduction of tax at source from payment made for fees for technical services -
194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of-
(a) --------or
(b) fees for technical services,
(c) --------------
The section defines the meaning of professional services and technical services as following
For the purposes of this section,-
(a) "professional services" --------------------
(b) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9 ;
Explanation 2 to clause (vii) of sub-section (1) of section 9 defines the fess for professional services as following -
For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".
A director on the board is responsible for managing the day to day affairs of the company, thus his service are either of consulting nature or of managerial nature which fall with the meaning of fees for technical services for the purpose of section 194J as defined in Explanation 2 to clause (vii) of sub-section (1) of section 9 ( produced above). Accordingly the provisions of section 194J apply to for TDS purpose on sitting fees to directors and TDS is required to be deducted @ 10%+ applicable SC and EC.
194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of-
(a) --------or
(b) fees for technical services,
(c) --------------
The section defines the meaning of professional services and technical services as following
For the purposes of this section,-
(a) "professional services" --------------------
(b) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9 ;
Explanation 2 to clause (vii) of sub-section (1) of section 9 defines the fess for professional services as following -
For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".
A director on the board is responsible for managing the day to day affairs of the company, thus his service are either of consulting nature or of managerial nature which fall with the meaning of fees for technical services for the purpose of section 194J as defined in Explanation 2 to clause (vii) of sub-section (1) of section 9 ( produced above). Accordingly the provisions of section 194J apply to for TDS purpose on sitting fees to directors and TDS is required to be deducted @ 10%+ applicable SC and EC.
22 June 2010
Also for Executive directors TDS deductible u/s 192 as it's treated as managerial remuneration.
Also visit this link
https://www.caclubindia.com/forum/tds-for-sitting-fees-64282.asp
Also visit this link
https://www.caclubindia.com/forum/tds-for-sitting-fees-64282.asp
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
