Tds for directors remmunation
This query is : Resolved
11 January 2013
Dear Sir,
We are usually deducting TDS for Directors Remuneration u/s 192.
But as per the new clause inserted on 31.07.12 TDS for Directors remuneration coming under 194J(1)(ba)@ 10%.
Kindly advice what sec will be applicable to us.
Regards
javad
Calicut
We are usually deducting TDS for Directors Remuneration u/s 192.
But as per the new clause inserted on 31.07.12 TDS for Directors remuneration coming under 194J(1)(ba)@ 10%.
Kindly advice what sec will be applicable to us.
Regards
javad
Calicut
NILESH GUPTA
(Expert)
11 January 2013
Dear Javad,
Section 192 basically deals with Employer and Employee relationship, so if the person is having a employer and employee relationship as per the terms of contract between him and co. or is a whole time director of the company then the remuneration paid to him will be treatd as remuneration on payroll basis and will be considered u/s 192 whereas u/s 194J if he is acting as director (not on a payroll basis or without any employer and employee relationship) then any sum paid to him as remuneration/fees/commission by what ever name will fall under 194J.
Hope your query is satisfied.
regards,
Nilesh Gupta
Section 192 basically deals with Employer and Employee relationship, so if the person is having a employer and employee relationship as per the terms of contract between him and co. or is a whole time director of the company then the remuneration paid to him will be treatd as remuneration on payroll basis and will be considered u/s 192 whereas u/s 194J if he is acting as director (not on a payroll basis or without any employer and employee relationship) then any sum paid to him as remuneration/fees/commission by what ever name will fall under 194J.
Hope your query is satisfied.
regards,
Nilesh Gupta
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Ajay Mishra
(Expert)
11 January 2013
Hi
Go to the following link, it may help you:
https://www.caclubindia.com/articles/tds-on-remuneration-paid-to-directors-13422.asp#.UO-tTuSE2Jw
Go to the following link, it may help you:
https://www.caclubindia.com/articles/tds-on-remuneration-paid-to-directors-13422.asp#.UO-tTuSE2Jw
Message likes :
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CA Lokesh Pokharna
(Expert)
11 January 2013
Agree with nilesh ji.....
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