Please give your opinion about the applicability of TDS on the payment of sitting fee to directors. What should be the rate? under which section ?
Arun Kumar Aggarwal
6 Replies
Kumar M. Himanshu
(CONSULTANCY, TAXATION)
(29 Points)
Replied 15 December 2007
Note that Sitting Fees of directors is considered as Manegerial Renumeration (Salary) under the Companies Act & Income Tax Act.
Thus TDS is deductable as per the same process as for TDS on Employee salary
Surendra
(Finance)
(71 Points)
Replied 15 December 2007
hi...
is the sitting fees paid to whole time directors or independent directors?
if it is for independent directors TDS need not be deducted (little bit doubt).. if it is for the whole time directors it must be treated as managerial remuneration and tds should be deducted u/s 192 of IT act....
is the sitting fees paid to whole time directors or independent directors?
if it is for independent directors TDS need not be deducted (little bit doubt).. if it is for the whole time directors it must be treated as managerial remuneration and tds should be deducted u/s 192 of IT act....
Mulchand Darji
(Service)
(38 Points)
Replied 18 December 2007
Dear,
If Sitting fees paid to non executive director it will be treated as professional fees & accordingly TDS will be deducted u/s 194J.This director should only get sitting fee & not get any other remuneration.
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