Tds for directors remmunation

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javad (Querist)

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)

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)

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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