08 January 2015
IN MY COMPANY DIRECTOR IS PAID 15 LACS REMUNERATION AND TDS DEDUCTED UNDER HEAD 194J. ANOTHER TAX COMPUTATION PREPARER USED TO CALCULATE TILL DATE UNDER SECTION 192 CONSIDERING WORD SALARY.
NOW WHAT IS CORRECT HEAD IF REMUNERATION IS PURELY SALARY WITHOUT PERQUISITES.
WILL IT BE NECESSARY FOR DIRECTOR TO REGISTER FOR SERVICE TAX IF TDS IS DEDUCTED UNDER 194J?
I AM UNDER PUZZLE AS I NEED TO REVISE COMPUTATION OR TDS RETURN.
08 January 2015
As the payment is remuneration TDS is to be deducted u/s 192 only. If you deduct TDS u/s 194j 100% service tax has to be paid by the company. For Director service tax registration is not required.
09 January 2015
Director is an employee of the company hence TDS on salary paid to him must be deducted u/s 192 only. But 194J is applicable when Sitting fees is paid to Directors, because sitting fees is subject to service tax under reverse charge.
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