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Tds on director remunaration not deducted

TDS 1352 views 1 replies

Dear Members,

Our company is a Private limited company and maintain accounts in Tally ERP 9. For the month of July and August our company paid Rs 20000 each to our 2 director as their remunaration by cheque and TDS was not deducted by the company at the time of payment ,as we have came to know letter that , any remunaration paid to director is tax deductable w.e.f  1.07.2012 @ 10% u/s 194j(1)(ba) of Income Tax Act 1961. Now please tell me how to deduct the TDS now in September along with July and August month TDS and what journal entry to be passed in Tally.Also let me know if any penalty to be paid to the Income atx department.The journal entry passed at the time of Payment of director remunaration...

Director Remunaration A/c....Dr

       To, Party Ledger A/c.........

 

Regards,

Sourav

 

 

Replies (1)

Dear Sourav,

If the director remuneration paid for contract of employment with the company then sec.192 TDS is applicable.

For any other remuneration paid section 194J is applicable.

If 194J TDS is applicable, you have to collect the TDS portion money from the director and pay the TDS with interest to the govt. If it is not possible to collect the TDS portion from you grossup the payment, and pay the TDS with interest.

If 192 TDS is applicable, you deduct the TDS in future payment and pay.(Here it is possible to save interest)


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