Can anyone plz tell me whether TDS is applicable on interest to partners or remuneration to partners.
Also tell me whether TDS is applicable on remuneration to director and whether TDS is applicable on Audit Fees.
8 Replies
Ramakrishna
(Financial Executive)
(438 Points)
Replied 05 October 2008
Dear Friend!
Interest paid on partner's Account is not liable for TDS in view of the specific exemption under Section 194A(3)(iv) of the Income Tax Act.
Remuneration to partners of firms and directors of companies are 'Salary' and therefore liable for TDS under Section 192.
Regarding 'Audit fees' paid the auditor, the same is professional payment liable for TDS under Sevtion 194J at 10% + Surcharge as applicable + Educational cess.
Good Bye! Cheers!!
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 06 October 2008
Tax at Source is not deductible on Interest or Salary paid to partner as per the Partnership Deed.
CA Ravish Trivedi
(The Possibilities are Infinite...)
(772 Points)
Replied 06 October 2008
if Interest is paid more than partnership deed then will it change the exemption to deduct Tds 194(3)iv.
Jitender
(Chartered Accountant)
(8724 Points)
Replied 06 October 2008
tds on interest as well as salary is not deductible ,paid to partners.
tds on audit fees is deductible u/s 194J.
tds on director's salary is deductibleu/s 192.
Ramakrishna
(Financial Executive)
(438 Points)
Replied 06 October 2008
Dear Friends!
As per Section 28(v) of the Income Tax Act, salary paid to a partner of partnership firm is only business income in the hands of the partner and therefore no TDS would be made on the same.
Good Bye! Cheers!!
Nalam Ravindranath
(78 Points)
Replied 06 October 2008
Salary to working partner and interet to partners do not attract the provisions of TDS irrespective of the volume of amount.
However the remuneration to Directors do attract the provisions of TDS section 192 of Income tax act.
Audit fee payable if it exceeds Rs. 20,000( inclusive of servie tax) attracts TDS under section 194J OF INCOME TAX ACT
Recent Topics
- Rectification to decrease income in SCHEDULE OS
- Can Statutory Auditor of a subsidiary become concu
- Client Asking for the Revised Invoice
- Share office desk in bkc, near family court
- 80D claim for payment paid by parent
- TDS on purchase of Flat under subvention scheme be
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
Related Threads
CAclubindia
