Tds for directors remmunation

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javad (Querist)
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11 January 2013 Dear Sir,

We are usually deducting TDS for Directors Remuneration u/s 192.

But as per the new clause inserted on 31.07.12 TDS for Directors remuneration coming under 194J(1)(ba)@ 10%.

Kindly advice what sec will be applicable to us.

Regards
javad
Calicut

NILESH GUPTA

NILESH GUPTA (Expert)
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11 January 2013 Dear Javad,

Section 192 basically deals with Employer and Employee relationship, so if the person is having a employer and employee relationship as per the terms of contract between him and co. or is a whole time director of the company then the remuneration paid to him will be treatd as remuneration on payroll basis and will be considered u/s 192 whereas u/s 194J if he is acting as director (not on a payroll basis or without any employer and employee relationship) then any sum paid to him as remuneration/fees/commission by what ever name will fall under 194J.

Hope your query is satisfied.

regards,
Nilesh Gupta

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Ajay Mishra

Ajay Mishra (Expert)
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11 January 2013 Hi

Go to the following link, it may help you:

https://www.caclubindia.com/articles/tds-on-remuneration-paid-to-directors-13422.asp#.UO-tTuSE2Jw

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