DEDUCTION OF TDS ON DIRECTORS REMUNERATION

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2010 CAN ANY BODY PLS TELL ME SHOULD I DEDUCT TDS ON DIRECTORS REMUNERATION IF IT IS CONSIDERED AS BUSINESS CONSULTANCY EXPENSE AND NOT REMUNERATION AND THE DIRECTORS ALSO CLAIM THAT AS BUSINESS INCOME IN THEIR PERSONAL RETURN OF INCOME.

CA Kalpesh Gokani

CA Kalpesh Gokani (Expert)
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06 July 2010 yes, TDS should be deducted whether it is treated as remunaration or business consultancy.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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06 July 2010 yes.need to be deducted under sec.192

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Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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06 July 2010 TDS need to be deducted u/s 194J. Moreover, in the ITR, director will show this income as consultancy or technical income but cannt show it as a business income.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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06 July 2010 Are there any other means available to pay remuneration?
Yes, the Directors can be paid remuneration for their professional services which need not be included in any ceiling limits of Director Remuneration. For this purpose in the Central Government’s opinion, the director should possess the requisite qualifications for practicing the profession.

as per above, if Director has professional qualification and practising it and services rendered by him in a professional capacity, then amount paid as consulancy service will be covered u/s 194J.