TDS under section 194J
This query is : Resolved
20 November 2009
We are a financial consultancy pvt ltd. co. We have recently hired CA professionals. Some of whom are holding COP.
Is there any provision by which they can hold COP and can be on rolls of co.? Since I was not aware of any such provision hence, I treated them as not on rolls but as consultants to our co. and deducted TDS u/s 194J.
Can there be any scrutiny on company because of such treatment and not as salaried professionals?
Besides is it possible that now they surrender their COP and come on rolls of the company? In dec. the quarterly return in form 26 Q would be submitted as showing 2 months professional fees? Would there be any scrutiny however the amount is less than Rs.5000
Is there any provision by which they can hold COP and can be on rolls of co.? Since I was not aware of any such provision hence, I treated them as not on rolls but as consultants to our co. and deducted TDS u/s 194J.
Can there be any scrutiny on company because of such treatment and not as salaried professionals?
Besides is it possible that now they surrender their COP and come on rolls of the company? In dec. the quarterly return in form 26 Q would be submitted as showing 2 months professional fees? Would there be any scrutiny however the amount is less than Rs.5000
M Prabhakar Menon
(Expert)
20 November 2009
Holding a COP does not automatically make a CA a consultant for any purposes What is your company's policy in this regard follow that and dont over-stretch your imagination.
chetan soni
(Expert)
20 November 2009
Preeti,
There is provision for Holding COP & doing job in the company in the CA rules. That COP is considered as part time COP. I am also holding the same kind of COP & also working in the comapany from past 4.5 years on the rolls of the company.
Now as far as showing the payments to CA's as professional fees, its a purely a decision on the company part. You can also show this as salary paid to them.
Also at the time of income tax scrutiny for showing this amount as professional fees, there will not be any issues just get the letter of engagement signed from those CA's.
There should not be any scrutiny on the grounds of professional fees paid to CA's.
There is provision for Holding COP & doing job in the company in the CA rules. That COP is considered as part time COP. I am also holding the same kind of COP & also working in the comapany from past 4.5 years on the rolls of the company.
Now as far as showing the payments to CA's as professional fees, its a purely a decision on the company part. You can also show this as salary paid to them.
Also at the time of income tax scrutiny for showing this amount as professional fees, there will not be any issues just get the letter of engagement signed from those CA's.
There should not be any scrutiny on the grounds of professional fees paid to CA's.
20 November 2009
Agree with Chetan
Sanjeev Kumar Sharma
(Expert)
03 December 2009
Dear Chetan
Pls. confirm that at present in CA rules there is provision of holding the part time COP and doing job in co. on roll.
With regards
Sanjeev Sharma
Pls. confirm that at present in CA rules there is provision of holding the part time COP and doing job in co. on roll.
With regards
Sanjeev Sharma
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