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TDS on Sitting fees

Deepak Jain Now CA + CS (AM in TCS CA, CS) (362 Points)

11 February 2009

Is sitting fees to Directors liable to TDS. If so undere profession or salary

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4 Replies

Pranay Shukla (CA) (52 Points)
Replied 11 February 2009

Hi Deepak,

Directors are not employee of the company except whole time and managing director. While considering remunaration for the director for the sitting fees, it is purly for the technical assistance to the company. So TDS would be charge on the sitting but not as salary.

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CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 11 February 2009

TDS is chargeable as Technical / professional Fees at the rates applicable

Abhinav Agarwal (M.Com C.A SAP Consultant) (814 Points)
Replied 12 February 2009

It should be u/s 194 J

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 12 February 2009

A director is also a manager under the provisions of the Companies Act, 1956. He is therefore, technical personnel. Hence, any payment other than payment of directors’ remuneration to such director (may be it a sitting fees or any other sum) shall be required to be taken into consideration for TDS purpose u/s.194J. Directors’ remuneration is subject to TDS u/s.192.