A Pvt Ltd Company has been incorporated at 4-12-2014. Before this date i.e. 6-10-2014, the now- director had paid professional fees to a law firm for some legal works. Now, Query is whether the company in question is required to pay TDS for the aforesaid fees and if yes, how is it supposed to deduct the TDS if the payment has already been made and further, the company has ceased its involvement with that legal firm after that payment.
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194j - professional fees before incorporation!!
Replies (3)
I dont think that TDS is applicable here
Co. was not in existence,the contract is also not with the Co.
194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident
Person responsible for making the payment must be the directors [Individuals]
& Individuals are not required to deduct tax unless
"an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section "
Atmost directors/promoters could be liable to deduct TDS, but definitely not the Co.
Other views possible and are welcomed
THE PROFESSIONAL CHARGES PAID BY THE DIRECTOR IS THE PERSONEL EXPENSES OF HIM.......
WHY U RELATE IT TO THE COMPANY WHICH WAS INCORPORATED AFTER??
Term of pre incorporation charge account at that time tds point may come in my opinion
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