Tds u/s 194j

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2013 Our assessee has paid commission to there wholetime director. & TDS on such payment is deducted & paid u/s 194J as per amendment in July 2013. is this treatment to commission paid to wholetime director is right if not what rectification can be made?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 August 2013 Treatment is absolutely correct.

As per the new clause i.e., (1)(ba) of 194J inserted as on 1st July 2012 in Budget 2012 – Any remuneration of fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company shall liable to deduct 10%.

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2013 commission paid to salaried wholetime director should be treated as payment u/s 192 or 194j??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 August 2013 Section 194J(1)(ba) attracted provided it is not a part of Salary.

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2013 What are remedies to prove that commission paid is not part of salary??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 August 2013 It should not be part of terms of employment and managerial remuneration.