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TDS on sitting fees

Ramasubbu K (Sr.GM - Finance & Company Secreta) (685 Points)

31 August 2007

Wherther Sitting fees paid to Directors is liable for TDS under Section 194J

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11 Replies

(Guest)

No its not a professional fees as per section 194J

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MAHENDRA IYER (SERVICE) (315 Points)
Replied 31 August 2007

TDS provision does not apply for sitting fees.

tushar jain (Service) (107 Points)
Replied 06 September 2007

194j provides for TDS on professional services. Director fee shall be covered under professional service fee, since it is a specialised job and is normally done by professionals.

(Guest)

0000000010

(Guest)

Sitting fees paid to directors are not subject to TDS. directors are not employees of the Company adn further it is not always true to say that all the directors are professional and therefore 194J is applicable.

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Kalpana (Accounts) (76 Points)
Replied 19 March 2008

Hi Friends

Can anyone explain me regarding sitting fees.

thanks in advance

(Guest)

Directors sitting fees are neither covered under 194J or 193C. As per my knowledge it is aRemuneration. All Companies are clubbing Sitting fees with Directors remunaration.

(Guest)

it is not clarified in Companies Act and also in Income Tax Act.

Directors sitting fees are neither covered under 194J or 194C.

It is Remuneration and clubbing Sitting fees with the details of Directors remunaration in Notes to Accounts.

(Guest)

Sitting fees paid to Non Executive directors are not subject to TDS. directors are not employees of the Company

and Sitting fee paid to Executive Directors is treated as Managerial Remunaration u/s 192 is applicable for TDS

Satheesh. B

9003022351

(Guest)

Sitting fees paid to Non Executive directors are not subject to TDS. directors are not employees of the Company

and Sitting fee paid to Executive Directors is treated as Managerial Remunaration u/s 192 is applicable for TDS

Satheesh. B

9003022351

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Vijay Sarathi H (PARTNER) (562 Points)
Replied 30 June 2008

Director May be a professional (when qualified) or a technical person. Under Companies act, Director is also a manager. Hence he is a technical person. So tax has to be deducted u/s194J.