TDS
This query is : Resolved
19 April 2009
DEAR ALL
IF PARTNERSHIP FIRM MAKE PAYMENT OF ANY AMOUNT SAY RS. 500000/- TO PARTNERS BY WAY OF SALARY,REMUNERATION ETC. SHOULD PF DEDUCT TAX AT SOURCE?
BY WHAT NAME T.D.S SHOULD BE DEDUCTED?
WILL IT ISSUE FORM 16A.
IF PARTNERSHIP FIRM MAKE PAYMENT OF ANY AMOUNT SAY RS. 500000/- TO PARTNERS BY WAY OF SALARY,REMUNERATION ETC. SHOULD PF DEDUCT TAX AT SOURCE?
BY WHAT NAME T.D.S SHOULD BE DEDUCTED?
WILL IT ISSUE FORM 16A.
20 April 2009
If partnership firm make payment to partners by way of salary remuneration or interest on capital there is no TDS applicable.
20 April 2009
In the chapter salary , it is clearly mentioned that if a partner receives salary , remuneration by whatever name it is called, the income shall be treated under Profit and gain from business and profession, it it because there is a relationship between business held by the partner and salary is provided by the surplus made by the firm .
20 April 2009
agreed
20 April 2009
No TDS SHALL BE DEDUCTED ON SALART/ REMUNERATION ETC PAID TO PAERNER BY A FIRM
20 April 2009
As per section 194A(3)(iv)the section 194A (i.e deduction of TDS on interest other then interest on securities)SECTION 194A shall not be appliable to such income credited or paid by a firm to a partner of the firm;
Hence No TDS on Interest paid by firm to partner_______(i)
the section 192(TDS on salary) is not appliable to salary / remuneration paid by firm to its partner as there is no employer-employee relation
===
As per section 192(1)
"Any person responsible for paying any income chargeable under the head “Salaries” shall , at the time of payment ,deduct income –tax.........”
salary & remuneration PAID BY FIRM TO ITS PARTNER is not taxable as salary in the hands of partner but taxable as Profit and gain from business and profession.
Hence No TDS on SALARY/ Remuneration paid by firm to partner________________________________(ii)
By adding (i) and (ii), we get
No TDS on INTEREST/SALARY/ REMUNERATION paid by firm to partner.................("proved")
Hence No TDS on Interest paid by firm to partner_______(i)
the section 192(TDS on salary) is not appliable to salary / remuneration paid by firm to its partner as there is no employer-employee relation
===
As per section 192(1)
"Any person responsible for paying any income chargeable under the head “Salaries” shall , at the time of payment ,deduct income –tax.........”
salary & remuneration PAID BY FIRM TO ITS PARTNER is not taxable as salary in the hands of partner but taxable as Profit and gain from business and profession.
Hence No TDS on SALARY/ Remuneration paid by firm to partner________________________________(ii)
By adding (i) and (ii), we get
No TDS on INTEREST/SALARY/ REMUNERATION paid by firm to partner.................("proved")
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
