Sushil Kumar Mohanty (Accountant) (137 Points)
19 March 2013DEAR FRIENDS
IF ONE DIRECTOR OF A PVT. LTD. COMPANY RECEIVE REMUNERATION Rs. 350000/- , F.Y. 2012-13 , WHAT IS THE TDS PROVISION OF REMUNERATION AMOUNT, & U/S 194J DIRECTOR REMUNERATION TDS CALCULATED @ 10% BUT THE PROVISION W.R.F 01.07.12. KINDLY SEND THE PROCEDURE FOR TDS CALCULATION .
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 19 March 2013
As per the new clause i.e., (1)(ba) of 194J inserted as on 1st July 2012 in Budget 2012 –
Any remuneration of fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company shall liable to deduct 10%.
It must be noted that the clause i.e., 194J (1)(ba) covers any remuneration paid whether by way of fees or commission or by any other name and such payments shall be subjected to TDS 10%
It is useful to refer to provisions of the Companies Act relating director’s remuneration. The director remuneration includes payments made to directors for services rendered in any other capacity. In other words salary paid to Managing Director/Whole Time Director, commission, sitting fees paid to directors and any other fees paid for professional services shall be treated as remuneration under the Companies Act, 1956. The same analogy may be applied to determine what constitutes directors remuneration for deducting tax at source under Income Tax Act. However 194J (1) (ba) indicates that if remuneration paid is covered under section 192, this clause is not applicable. If TDS is not made U/S 192, it has to be invariably covered under 194J.
However Rs 30000 limit is not applicable under this provision
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 19 March 2013
Agree with Mr. Rathore
CAclubindia
