08 October 2013
what is the exact rate of TDS for remmuneration to director. as per Section 194J it is 10% but one of our client company is deducting at the rate of 30%
08 October 2013
It depends how you treat it, If you treat remmuneration to director as salary then section 192 B will be applicable and tax will be deducted accordingly, otherwise 194 J will applicable and 10% will be deducted. but it is always suggested that you take director remuneration as salary only as if you take it otherwise then service tax will also be applicable
08 October 2013
Thanks a lot for the reply. but the client company is paying just 10,000 per month and TDS deducted is 3000. that is why i am getting this query.
08 October 2013
Then you client is observing totally a wrong practice.. i suggest director remmuneration should always be considered as salary, therefore tell your client to stop TDS deduction now, and your director will go for refund in his personal return..
CAclubindia
