Tds on stipend (appernticeship)
This query is : Resolved
04 October 2013
Is TDS (194J) attract for Stipend for Apprenticeship Employees.....?
04 October 2013
In General there is No TDS on Stipend,
However, some firms like PWC and Deloitte deduct TDS U/S 194J just to play safe...
regards,
However, some firms like PWC and Deloitte deduct TDS U/S 194J just to play safe...
regards,
Message likes :
1 times
04 October 2013
Hi
Read the case sudhir Kr sharma v/s ITO in the jaipur bench of ITAT in may 1983. As per this stipend is not taxable.
Read the case sudhir Kr sharma v/s ITO in the jaipur bench of ITAT in may 1983. As per this stipend is not taxable.
Message likes :
1 times
05 October 2013
in light of the Sudhir Kr Sharma judgment it has been argued that stipend is not taxable. Being ITAT judgment it may or not be accepted by other benches or higher judicial courts.
Further burden to prove that stipend was given to cover costs of education shall be on the articled clerk.
Further reason for Big 4 firms to deduct taxes under 194J or 192B (EY deducts under 192B) is based on their interpretation of articled clerk's relationship with principal. Rather your case of claiming exemption under 10(16) would weaken further if the principal takes a stand in favor of 194J or 192B.
Further burden to prove that stipend was given to cover costs of education shall be on the articled clerk.
Further reason for Big 4 firms to deduct taxes under 194J or 192B (EY deducts under 192B) is based on their interpretation of articled clerk's relationship with principal. Rather your case of claiming exemption under 10(16) would weaken further if the principal takes a stand in favor of 194J or 192B.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- SFT Cash Deposit in Current Account
- FORM 26A APPLICABILITY
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Transporter Declaration form
- Multiple trade mark
- LC charges in relation to Asset purchased should be Capitalised ?
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
