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Tds on director pmt

TDS 489 views 1 replies

Its a closely held Private Limited Company. We made a couple of payments to me & the other director. I know we have to deduct TDS. 

Is it under 192B? or 194J @ 10%?

Replies (1)

If directors are in whole time employment(MD,WTD) of the company, then TDS u/s 192B.

If directors are ordinary or non executive directors, then TDS is to be deducted u/s 194J in respect of any remuneration, sitting fees or commission paid to them.

Also payment to ordinary directors will attract TDS u/s 194J without any threshold limit.i.e. limit of Rs. 30000 is not applicable in such cases. 

Also if Directors are ordinary directors, then service Tax shall be payable by company (Reverse charge).Refer Notification 36/2012. 


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