Tds on director remunearation

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CD MAHESHWARI (Querist)

07 July 2012 As per section 194 J (1)(ba) tds @10% is to be deducted on payment to director of any fees/commission etc other than amount coverd u/s 192. Is this TDS is to be deducted without considering any overall limit of payment of Rs,30,000/-. It means even payment of Rs.1000/ as sitting fee will attract TDS.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

07 July 2012 No, TDS will be deducted only if the payment in the year exceeds Rs. 30000

CD MAHESHWARI

CD MAHESHWARI (Querist)

07 July 2012 i dont think so. Please see clauses in provided that no deduction shall be made under this section - only payment made as per (a) (b) (c) & (d) is covered for yearly limit of Rs.30,000/-

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

07 July 2012 Please read the proviso to section 194J which is applicable to the section and not to particular sub section/clause.

Accordingly, you will get the benefit of Rs. 30000 for clause (ba) under 194J(1) also.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

07 July 2012 Sorry, you are right
thanks.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

07 July 2012 The proviso does not cover clause (ba).
thanks

CA Prashant Gupta

CA Prashant Gupta (Expert)

07 July 2012 TDS will be deducted on full amount. 30000 limit is not applicable on director fee. so even 1000 Rs will attract 194 J and 10% TDS will be deducted

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