What s the TDS rate for sitting fees paid to a non resident director
S Madhavan (Service) (33 Points)
21 December 2010What s the TDS rate for sitting fees paid to a non resident director
CA ANKUSH AGGARWAL
(CHARTERED ACCOUNTANT)
(2782 Points)
Replied 21 December 2010
10% as per ma knowledge
Divya K S
(CA)
(289 Points)
Replied 21 December 2010
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).
S Madhavan
(Service)
(33 Points)
Replied 23 December 2010
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
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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