tds u/s 194 J

This query is : Resolved

Amit (Querist)
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16 July 2009 hello
my client is a pub. ltd. company and this com' accounts got audited during the financila year 2008-09 for 5 years. audit fee P.A. is 20,000/-. and the payment was made consolidated Rs. 100,000/- without deducting any TDS. C & AG had make querry on the TDS.
in this case, what are the remedies to avoid the TDS liabilities.

thanx in Advance
CA Amit Bansal
caamitbansal2007@gmail.com

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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16 July 2009 Dear Amit,

TDS is leviable on the Audit fee and it has to be paid b y on grossing up method. TDS @ 10.3% would be still applicable on the said transaction

Followig are the formulae for Grossing Up

Audit Fee*100/100-Rate of tax

=100000*100/100-10.3
=111482.7202

TDS=100000-111482.7202
=11482.72018