Tds on directors remuneration of private limited company
This query is : Open
14 July 2013
Whether Tds is required to be deducted on Remuneration paid on Directors of Pvt. Ltd. Company.
14 July 2013
YES UNDER SEC 194J W.E.F1.7.2013, TDS NEEDS TO BE DEDUCTED.
14 July 2013
1)Please note
it all depends on director relationship with the company.
if there is employer employee relationship TDS under 192(salary)..otherwise TDS194J applicable vide newly inserted clause (1)(ba)
2)Please do refer 194J(1)(ba) inserted in budget 2012 and will be effective from 01.07.2012
3)TDS 192 is applicable on remuneration payable in case of Managing Director or wholetime director or executive director, if the director is in full time employment of the company.
4)Newly inserted clause 194J(1)(ba) clearly says that if remunerations paid is covered under 192 this section not applicable
So do ascertain the relationship of your director with the company and deduct TDS accordingly
Thanks & regards
Ganesh babu k
it all depends on director relationship with the company.
if there is employer employee relationship TDS under 192(salary)..otherwise TDS194J applicable vide newly inserted clause (1)(ba)
2)Please do refer 194J(1)(ba) inserted in budget 2012 and will be effective from 01.07.2012
3)TDS 192 is applicable on remuneration payable in case of Managing Director or wholetime director or executive director, if the director is in full time employment of the company.
4)Newly inserted clause 194J(1)(ba) clearly says that if remunerations paid is covered under 192 this section not applicable
So do ascertain the relationship of your director with the company and deduct TDS accordingly
Thanks & regards
Ganesh babu k
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14 July 2013
Correctly answered by Ganeshbabu. If paid as salary TDS to be deducted u/s 192. Other than salary (like Sitting Fees) TDS to be deducted u/s 194J(1)(ba) @10%. No threshold limit for section 194J(1)(ba).
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16 August 2016
Can any one tell me..what is the remedy , if the co has not made TDS Provision on Remuneration to Director u/s 192.
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