dear all.....please let me know whether tax is deducted u/s 194 J (i.e.10% on professional fees) on directors remuneration or not.......according to the union budget 2012-13
13 Replies
Sonam Bidasaria
(CA)
(770 Points)
Replied 19 March 2012
It has been specifically mentioned in Memorandum of Union Budget, that any payment made in the nature of salary on which TDS under Sec 192 is deductible, will not fall under this provision (ie provision of TDS @ 10% under Sec 194J).
However, on sitting fees or any other payment, 194J will be applicable.
satish kumar voleti
(A.C.A., (ICWAI))
(1686 Points)
Replied 19 March 2012
Section 194J of the Act – Tax deduction at source from payment to director
Under the existing provisions of the Income-tax Act, a company, being an employer, is required to deduct tax at the time of payment of salary to its employees including Managing director/whole time director. However, there is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary.
It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director, which is not in the nature of salary, at the rate of 10% of such remuneration.
Impact - By insertion of the new clause, now any amount payable to a director of a company, by way of remuneration or fees or commission, which is not in the nature of salary, shall be liable for tax deduction under Section 194 at the rate of 10%. Accordingly, any payment to a director (whether whole-time or not) including siting fee made by a company would be liable for tax deduction at source. This would levy an extra compliance burden and responsibility on the companies for deducting taxes on payment made to its directors
sai kumar
(CA)
(160 Points)
Replied 19 March 2012
Under sec 194j of the incometax act,in sub-sec(1),after clause,,any remuneration or fees or commission by whaat ever name called,other than those on which tax is deductible u/s 192, to a director of a company.....it is with effect from 1st july 2012
so, according to budget 2012-13, the tax is deductible u/s 194j, on director remuneration
srinivass
(CA Final)
(2466 Points)
Replied 19 March 2012
Agree with all .sai nice to see you long back your all most correct
Sonam Bidasaria
(CA)
(770 Points)
Replied 19 March 2012
| Originally posted by : sai kumar | ||
 |
Under sec 194j of the incometax act,in sub-sec(1),after clause,,any remuneration or fees or commission by whaat ever name called,other than those on which tax is deductible u/s 192, to a director of a company.....it is with effect from 1st july 2012 so, according to budget 2012-13, the tax is deductible u/s 194j, on director remuneration |
 |
Plz note that TDS u/s 192 is deducted on the Directors Remuneration in current provision also, and in the amendment and as you have told "any remuneration or fees or commission by whaat ever name called,other than those on which tax is deductible u/s 192, to a director of a company"
It can be concluded that TDS u/s 194J is not deducted on Directors Remuneration.
k sudheer chowdary
(Articled Trainee)
(71 Points)
Replied 19 March 2012
Actully Till Now, For Directors Remuneration TDS Will Be Deducted Under 192 As Natur Of Salary, But As Per Latest Budget It Was Under 194j As Professional Fees (Applicable Rate 10%)
Sonam Bidasaria
(CA)
(770 Points)
Replied 19 March 2012
Please refer Memorandum of Direct Taxes of Finance Bill, in which it has been clearly stated:
"Under the existing provisions of the Income-tax Act, a company, being an employer, is required to deduct tax at the time of
payment of salary to its employees including Managing director/whole time director. However, there is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary.
It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director,
which is not in the nature of salary, at the rate of 10% of such remuneration.
This amendment will take effect from 1st July, 2012."
Director Remuneration is not covered under Sec 194J
CA Parag Jani
(BCom CA DISA Forensic Auditor)
(288 Points)
Replied 21 July 2012
What if a director receives Remuneration which is subjected to TDS U/s 194-J by the paying Company, then Can that director claim deductions like Depreciation on his own car or interest on car loan which he used for providing services as director to that company?
Husain
(Accountant)
(28 Points)
Replied 05 September 2012
Dear Sir,
Pvt. Ltd. co. director will get a salary? Limitation of a salary wil get month.
CA BHUVNESH S.VILAYATRANI
(CHARTERED ACCOUNTANT)
(282 Points)
Replied 16 October 2012
The Remuneration paid to a Director,which is not in the nature of Salary,is covered undernSection 194J.TDS rate is 10% of such Remuneration.This Amendment will take effect From 01-07-2012
krunal Shah
(student)
(24 Points)
Replied 01 November 2012
Tds u/s is deductible at the time of payment or credit??
SHASHANK SINGHAL
(Advocate)
(23 Points)
Replied 06 April 2015
whethre on the director remuneration tds is to be deducted u/s 194J along with service tax provision (reverse charge)
jamalu
(articleship)
(22 Points)
Replied 24 July 2017
tds deducted on sitting fees under sec 194 J considered income under the head business or other sources??/
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