Tds on directors salary

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 can any one tell me, payment of salary to directors of pvt. ltd. company is subject to which section for deduction of TDS (whether TDS should be deducted u/s 92B or 94J)???

CA. Naveen Bhat

CA. Naveen Bhat (Expert)
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10 July 2013 It depends upon whether directors are also employees or not. If they are also employees then 192 will apply however if they are independent directors then 194J will apply

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 Thank Naveen Sir, but sir how can i decide whether directors are employees or not??..sir as remuneration clause contained in Table - A it is mentioned that The MD/WTD shall be entitled to receive remuneration as such for managing their affairs of the company as may be fixed by agreement & subject to the provisions of any such agreement as may be fixed by the board from time to time which may be by ways of salary & all other perquisites.

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CA. Naveen Bhat

CA. Naveen Bhat (Expert)
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10 July 2013 So if there is a arrangement with directors for payment of remuneration they will be employees of the company.Also other indication will be the relationship with the company. Are they getting any salary from the company. But in your case you are paying salary that means they are the employees so Section 192b will be applicalble

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 Thank u sir,..i got the point..