Difference bitween sec.192 & sec.194j (as amended by fa 2012

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Pravin Prajapat (Querist)

25 January 2013 Respected Experts..........Plz Help me in the given senario.
I am Confusing to distinct the Sec.192 with the Sec.194J (ba)(As inserted by F.A.2012)

Since Commission is also treated as a Salary then Sec.192 should be applied but as par as 194J (ba) is concern the Commission or remuneration etc. should have to be Covered under 194J (ba) itself which is not as a Salary.
So how i can identify when a company is paying for Commission to its Director. then which Sec. would be applicable...?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

25 January 2013 Any amount paid to an employee is treated as salary.
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If the director is receiving salary he is employee of the company and commission paid to him will be considered under the head Salaries. Section 192 applies here.
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If the director is not an employee and receiving commission or sitting fee or etc...etc...apply 194j(ba).
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I think the doubt is cleared. But one more thing if TDS is deducted U/s 192 then 194J (ba) will not harm. Problem arises only when- either you ignore both the sections or you deduct TDS U/s 194J(ba) where as the applicable section is 192.
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Pravin Prajapat

Pravin Prajapat (Querist)

28 January 2013 Thank you sir but let me clear about one thing that
Director is receiving commission is not an employee of the Company means the said Company should it be other Co.....?

I mean if he is a Director of say...A Ltd. then If he receives Commission from the Co. other than A Ltd (say B Ltd.) then it will be treated under sec. 194j (ba)........?

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