TDS on commission paid to non executive directors

[raj]

Dear Sir,

 

Please give your valuable opinion on whether TDS on commission paid to non executive director (independent directors ) should be deducted u/s. 192 or u/s. 194H or u/s. 194J?

 

Raj K Lakhotia

Chessy Consultants P Ltd

Martin Burn House,

1, R N Mukherjee Road,

3rd Floor, R. No. 308

Kolkata - 700 001.

Phone : 033 -30287423/24/25

 

[KIRTI TULSYAN]

QUERY

Dear Sir,

 

Please give your valuable opinion on whether TDS on commission paid to non executive director (independent directors ) should be deducted u/s. 192 or u/s. 194H or u/s. 194J?

 

Raj K Lakhotia

Chessy Consultants P Ltd

Martin Burn House,

REPLY

This is a vexed question and there is no clarity in the law.If one wants to play safe deduction can be made u/s194 J.I have written an article on this issue which is getting published.If it interests the forum members,the same is attached.
regards
kalidas
 

---

1, R N Mukherjee Road,

3rd Floor, R. No. 308

Kolkata - 700 001.

Phone : 033 -30287423/24/25

 

--
-

Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


P.D.Rungta & Co. 
Chartered Accountants 

Board : +91 33 3028 2500 / 1
Direct Line : +91 33 3028 2502/3                                       
Cell : +91 9830174619

email:  caktu...@gmail.com

Head Office:
21, Hement Basu Sarani, 3rd Floor , Room .No.317 
Kolkata-700 001,West Bengal, India

Branches :                                                  
Bhagalpur | Raipur | Khatima | Godda

Homepage : http://www.pdrungta.co.in/

“Save Paper! Save Trees! Before printing, Think about the environment”

A Candle loses nothing by lighting another candle" --- eServe 

[Kalidas Ramaswami]

Tax will be deductible u/s 194J only as it represents payment for  professional services.
regards
kalidas
 

---

Date: Sat, 30 Mar 2013 07:35:57 -0700
From: bosub...@gmail.com
To: foru...@googlegroups.com
Subject: [CA RUNGTA PD] Re: TDS on commission paid to non executive directors

194J

--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
 
To join and/or to post to this group send email: foru...@googlegroups.com
To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net
 
---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+u...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
 
 

[Manoj Panda]

Dear Mr. Bosu,

It is very much clear that any amount paid to director as remuneration will be taxed u/s 192 and any other thing paid will be taxed u/s 194j (1B).

In your case director is receiving commission, which is not a remuneration at all. Hence tds u/s 194j (1B) is applicable.

Regards

Ca. M. Panda.

On Sat, Mar 30, 2013 at 8:05 PM, CA Bosu <bosub...@gmail.com> wrote:

194J

On Saturday, 23 July 2011 13:25:35 UTC+5:30, KIRTI TULSYAN wrote:

--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
 
To join and/or to post to this group send email: foru...@googlegroups.com
To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net
 
---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+u...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
 
 

--

Thanx & Regards


CA. M. Panda

Mob: 9032194270

[KIRTI TULSYAN]

QUERY 
Dear Sir, 

Please give your valuable opinion on whether TDS on commission paid to non executive director (independent directors ) should be deducted u/s. 192 or u/s. 194H or u/s. 194J? 

Raj K Lakhotia 
Chessy Consultants P Ltd 
Martin Burn House, 

REPLY 


This is a vexed question and there is no clarity in the law.If one wants to play safe deduction can be made u/s194 J.I have written an article on this issue which is getting published.If it interests the forum members,the same is attached. 
regards 
kalidas 

 REPLY 2

Dear Mr. Bosu, 
It is very much clear that any amount paid to director as remuneration will be taxed u/s 192 and any other thing paid will be taxed u/s 194j (1B). 


In your case director is receiving commission, which is not a remuneration at all. Hence tds u/s 194j (1B) is applicable. 




Regards 


Ca. M. Panda. 

NEW REPLY 1

I disagree with the reasoning.Only payments made to non executive directors come under the scope of deduction u/s 194j.If a whole time Director receive commision on net profits it would form part of remuneration and Section 192 would apply.It is therefore incorrect to say that commission is not part of remuneration. 
regards 
kalidas 

NEW REPLY 2

Dear All, 

1. Any payments to *executive *Directors - TDS comes under 192. No service 
tax 
2. Any payments to Non executive directors - 194J and service tax has to be 
paid by the company. 



* 

With Reverence, 


Bosu Kancharla | Chartered Accountant |Mobile: +91 9703 888 760 

--

Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


P.D.Rungta & Co. 
Chartered Accountants 

Board : +91 33 3028 2500 / 1
Direct Line : +91 33 3028 2502/3                                       
Cell : +91 9830174619

email:  caktu...@gmail.com

Head Office:
21, Hement Basu Sarani, 3rd Floor , Room .No.317 
Kolkata-700 001,West Bengal, India

Branches :                                             

Bhagalpur |  Khatima | Mumbai | Ahemdabad | Bangalore