Bonus payment

This query is : Resolved

Report Abuse Follow Query Ask a Query

Sankar Chakraborty

Sankar Chakraborty (Querist)
Follow

16 October 2012 please let me know bonus payment to director is subject to deduction of tds u/s 194J(1)(ba) or not ?

CA Manish

CA Manish (Expert)
Follow

16 October 2012 If there exists a Employer - Employee relationship then tds deduction falls u/s 192B not u/s 194J.

Sankar Chakraborty

Sankar Chakraborty (Querist)
Follow

16 October 2012 but act says : when there is a payment to directors other than salary section 194J(1)(ba) attracts

please confirm

Upgrade to CAclubindia Pro. Subscribe Now!

CA Manish

CA Manish (Expert)
Follow

16 October 2012 Sec 194J mainly covers commission an dsitting fees pai to directors and the sec clearly state that is if the remunaration is covered by sec 192B then sec 194J is not applicable.

If the remunaration is not covered by sec 192B and TDS is not deducted u/s 192B then it has to be deducted u/s 194J.

Message likes : 1 times