TDS ON SITTING FEE

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

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.