Tds on director's remuneration

This query is : Resolved

Varun Shah (Querist)
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21 August 2013 Dear Sir/Mam,

A company has not deducted TDS on Director's Remuneration of Rs. 6 lacs p.a. (192) for the 1st quarter of FY 2013-14. Hence we have filed NIL TDS return for the same period.

Kindly advise us on following points:

1) Whether we start deducting TDS after the 1st quarter of FY 2013-14 including the amount of the 1st quarter without paying any interest or,

2) We are left with only one option of revising the 1st quarter return by deducting TDS and depositing the same with interest.

Thanking you.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 August 2013 Yes you need to deduct tds even on Q1 remuneration of director under sec 192 and needs to revise tds return.

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Varun Shah

Varun Shah (Querist)
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21 August 2013 Thanks for the reply.

Please also tell instead of revising return, can we adjust the tax in remaining 9 months and show the necessary changes in 4 th quarter TDS return.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 August 2013 ans is no because it is statutorily required to deduct tax at source from directors remuneration and should be paid by 7 th of the next month in which tax was deducted at source else employer will be considered as assesee in default u/s 201(1A).

This is the procedure set up by law and you cannot change it any other way otherwise it will be considered as defective tds return for the quarter and all the consequence shall follow like int, penalty.
so it is better to pay int now only and revise it as soon as possible to avoid facing more complication later.

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