Minimum sitting fees to Independent Director

[Kanak Jain]

Dear all

please tell me provision regarding minimum sitting fees to independent director for attending board meeting and audit committee meeting in  listed company.

thanks & regards

cs kanak jain

[Sridevi B.N]

As per Section 310 of CA 1956, the following sitting fees shall be paid without the central govt. approval:

(a) Companies with a paid up share capital and free reserves of Rs. 10 Crore and above or turnover of Rs. 50 Crore and above - Sitting Fees not to exceed the sum of Rs.20,000/-

(b) Other Companies - Sitting fees not to exceed the sum of Rs.10,000/-.

If your company in (a) category then you may pay maximum sitting fees of Rs.20,000/- for board and committee meetings without central government approval.

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Sridevi.B.N
Company Secretary
Mysore Sales International Limited

Bangalore

[Ramaswami Mohan]

does sitting fees attract service tax ? who will pay the same - service provider (director) or the service availer (the company)

and whether the limits stated are inclusive of service tax liability or exclusive ,

regards,

Mohan  

CS. R.  Mohan
Mobile: 9908814677

[amrut...@yahoo.co.uk]

It is paid by company by reverse mechanism. Limits are exclusive. Service tax burden is applicable in last year. CS Amrut Parakh Sent from Yahoo Mail on Android

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From: Ramaswami Mohan <hkr....@gmail.com>;
To: csmysore <csmy...@googlegroups.com>;
Subject: Re: [CSMysore] Minimum sitting fees to Independent Director
Sent: Fri, Mar 21, 2014 12:19:33 PM

[hkr.mohan]

Thanks for the clarification,
Regards,
Mohan
09908814677

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[Kanak Jain]

10000 or 20000 for per director of total (overall) director

[csyogan .]

it has to be paid by the company as it is covered under reverse charge mechanism

but if the company pays it, it would be treated as remuneration to director

if the sitting fee is already on the max. cap i.e., 10k / 20k, then service tax has to be deducted and paid to the department

or else, if a company wants to pay apart from the 10k / 20k, then cg approval has to be taken as it would amount to payment of sitting fee more than the max. cap.

regards,
yogan.