TDS on Sitting Fees

10% as per ma knowledge

The nature of expense can be said as professional fees or consulting fees. Since he is a non-resident, the DTAA with that country in which he is a resident must be checked. The basic rate as per Income Tax Act is 10.3%. The rate as per DTAA or rate as per Income Tax Act, whichever is beneficial to the assessee must be used (whichever is less).

If sitting Fees is in the nature of professional expenes the applicable ection for TDS is 194 J. Payments to non resident director will be covered for TDS under section 195. Which is the correct section we need to apply