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TDS ON SITTING FEE

ramakanth (company secretary) (26 Points)

09 November 2010

Do we require to deduct TDS on sitting fee paid to directors and director is independent non- executiive director having no pecunary relation ship with the company

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Devendra (Chartered Accountant) (4775 Points)
Replied 09 November 2010

DEAR RAMAKANTH,

IF THE DIRECTOR IS A PROFESSIONAL OR A TECHNICAL PERSON, THEN TDS IS TO BE DEDUCTED U/S 194J.

SOMETIMES SITTING FEES IS CLUBBED WITH THE MANAGERIAL REMUNERATION PAID TO THE DIRECTOR WHICH IS LIABLE TO TDS U/S 192B.

IN MY OPINION TDS IS TO BE DEDUCTED ON SITTING FEES.

REGARDS,

DEVENDRA . K

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shailendra (Accounts Executive ) (128 Points)
Replied 10 November 2010

Hi Ramakant,

First thing is that you have not mentioned amount of sitting fee and second thing, in my opinion,sitting fee of non-executive director comes u/s 309 (4) (a)of Companies Act, just like out of pocket exps. So, there is no section in TDS for payment to non-executive director. If payment is done to executive director, it will add in remuneration and TDS will be deducted u/s 192.