Madhukumar k s (student) (46 Points)
05 September 2012Hi All,
Some one kindly explain What is Salary out of director Remunaration Paid ?
Section l94J has been amended with effect from July 1, 2012 to provide that tax will be deducted under section l94J on the remuneration paid or payable to a director, which is not in the nature of salary at the rate of 10 per cent of such remuneration.
No threshold limit is provided.Tax will be deductible even if the payment/credit during a financial year is less than Rs, 30,000.
Manjunatha M K
(Manager - Accounts)
(318 Points)
Replied 05 September 2012
Hi Madhu,
If there is contract of employment between company and the Director, then Sec 192 will Apply.
If Sec 192 is not applicable, Sec 194J will be attracted and Tax @ 10% should be deducted [i.e.under Sec 194J(1)(ba) ]
The limit of Rs.30,000/- is available only to Sec 194J(1)(a), (b), (c) and (d). But the limit is not applicable to Sec Sec 194J(1)(ba).
So, for even for single rupee Tax should be deducted @ 10%
Madhukumar k s
(student)
(46 Points)
Replied 05 September 2012
Hi Manjunath,
Thanks for your valuable answer.
But if he is managing or Full time director can he take remunaration as 192 to avoid section 194 J
Manjunatha M K
(Manager - Accounts)
(318 Points)
Replied 05 September 2012
You are right. Obviously Section 192 is applicable for Managing & Full time Directors remuneration.
But you should have separate board/GM resolution for the appointment and remuneration
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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