Sameer D Luthra (SERVICE) (69 Points)
25 August 2008I have clients' ( Foreign Companys') liaison office established in india, now the client wish to appoint a professional on a monthly remuneration of Rs X, what shall be the rate of TDS on such professional charges and under which section of the act? Please revert back.
rakesh kalani
(Article assistant)
(88 Points)
Replied 25 August 2008
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 25 August 2008
Sameer always normal provision attracts in this kind of cases 194j
Tousifahamad I Desai
(SERVICE)
(29 Points)
Replied 29 August 2008
I am working in Parneship Firm. We pay bonus & Ex-Gratia in diwali in A Y 2008-2009 diwali in october but i made provision of bonus & Ex-gratia which was unpaid amount till last date of return filling i.e. 30-9-2008. But our consultant says this bonus & ex-gratia amount paid before last date of return filling. What can i do? Please tell me about provision with reference my problem?
Tousifahamad I Desai
(SERVICE)
(29 Points)
Replied 07 September 2008
I am working in Parneship Firm. We pay bonus & Ex-Gratia in diwali in A Y 2008-2009 diwali in october but i made provision of bonus & Ex-gratia which was unpaid amount till last date of return filling i.e. 30-9-2008. But our consultant says this bonus & ex-gratia amount paid before last date of return filling. What can i do? Please tell me about provision with reference my problem?
Ramakrishna
(Financial Executive)
(438 Points)
Replied 14 September 2008
Dear Tousifahmed!!
I hope your problem centres around the provisional entry made in the books regarding bonus & ex-gratia amounts before 30.09.2008 and its effect in the recovery of TDS.
The payment referred is salary and the same becomes txable when it is paid or accrued whichever is earlier. The TDS provisions are also very clear to include such a situation as liable for TDS. TDS is attracted at the time of payment or credit of the amount whichever is earlier. Even credit of the amount to a 'Suspense Account' is not spared.
Good Bye!! Cheers!!
BHAVIK DOSHI
(DIRECTOR)
(31 Points)
Replied 16 June 2010
Hi Vikash,
1. Salary paid to Professionals hired for Liaison Office is taxable under the Income Tax Act - TDS (194J)
2. Liaison Office along with the RBI, needs to be Registered with the ROC - NCT Delhi and Haryana and with the ROC - Mumbai within 30 days of establishment by way of Form 44 (Source - Section 592(i) of the Act)
3. Liaison Office does not need to have a separate name, it will just continue as the Parent Company name along with 'Liaison Office'. For example - Parent company incorporated in USA is 'Gilly Inc', then the Liaison company named in India will be - 'Gilly Inc - Liaison Office'.
Regards,
Bhavik
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