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TDS FOR SITTING FEES

N.Sivaraj (Manager _ F&A) (93 Points)

20 January 2010

PLS CLARIFY - WHETHER SITTING FESS WILL ATTARACT TDS?

ADVANCE THANKS FOR THE REPLY

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14 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 20 January 2010

According to me yes it will attract TDS u/s 194J (TDS for Professional Services)

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Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 20 January 2010

Y, it comes u/s 194J

Bimal Thacker (Proprietor) (762 Points)
Replied 20 January 2010

Aab Baithne per bhi tax lagega kya?

No Tax is required to deduct on sitting fees. It is not for professional service.

ANIL A MALAVADE (Student ) (133 Points)
Replied 20 January 2010

No TDS for sitting fees , as it is not comes under any section and can you suggest me will it be taxable income? as i do agrre with the Bimal Thackrey.

CA Pramod Jain (manager finance) (1577 Points)
Replied 20 January 2010

if he is taking sitting fee as the remuneration mode then tds will liable u/s 192 or else 194j

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Bimal Thacker (Proprietor) (762 Points)
Replied 20 January 2010

Sitting fees is taxable under the head Income from other Sources

manish (Article Assitant) (358 Points)
Replied 20 January 2010

Yes, Tds will be applicable on sitting fee.

If Sitting fee is received as a salary then it is taxable under head salary and tds will be deduct u/s 192.

if sitting fee received other than salary then it is taxable under head PGBP as Profession or other income (if Sitting fee not received as a profession or business) and tds will be deduct u/s 194C.

CA-NISHIT SHAH (Finance Controller) (115 Points)
Replied 21 January 2010

Hi,

TDS u/s.194J is applicable on Director's sitting fees.

Nish*t shah

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 January 2010

Originally posted by : manish
	Yes, Tds will be applicable on sitting fee. If Sitting fee is received as a salary then it is taxable under head salary and tds will be deduct u/s 192. if sitting fee received other than salary then it is taxable under head PGBP as Profession or other income (if Sitting fee not received as a profession or business) and tds will be deduct u/s 194C.

Just one change is there instead of 194C it will be 194J.

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 21 January 2010

need to deduct TDs on Sitting Fees

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CA. RUPESH JOSHI (Chartered Accountant) (174 Points)
Replied 21 January 2010

No TDS is attracted on Director's Sitting Fees

Batul (Article assistant) (207 Points)
Replied 25 January 2010

A director is also a manager under the provisions of the Companies Act, 1956. He is, therefore, technical personnel. Any payment made to such director (be it sitting fee or any other sum) shall be required to be taken into consideration for the purposes of deduction of tax at source under section 194J.

CA. ANKUR (ASST. MANAGER ACCOUNTS) (54 Points)
Replied 29 January 2010

Sitting Fees are paid to directors over & above salary. For Directors income sitting fees is considered as Income from Other Sources as per IT Laws. So no TDS U/s 192 willbe deducted. In fact tds will be deducted u/s 194 J because what BATUL said above "A director is also a manager under the provisions of the Companies Act, 1956. He is, therefore, technical personnel. Any payment made to such director (be it sitting fee or any other sum) shall be required to be taken into consideration for the purposes of deduction of tax at source under section 194J."

Mitali Agarwal (Company Secretary) (638 Points)
Replied 29 January 2010

TDS has to be deducted in case of sitting fees paid to directors. Executive directors :u/s 192 (as it's treated as managerial remuneration) Non executive Directors : u/s 194J ( technical services )