sakshi (company secretary) 16 April 2012

Section 194 j

Hello Dear Friends,

I am a Practising Company Secretary.

I am working with a Chartered Accountants Firm for last 6 months. He gives me 7500Rs fixed in lieu of Preparing Minutes for Their Client Companies and apart from that he gives me my proffessional fees for other Secretarial Services Rendered for his Client Companies. I have no Direct link with his Companies.

Now at the time of Payments i gave him Two separate sheets (not bill).

1. Regarding the Payment made to Roc Online

2. Certification and other Professional Work

3. Monthly Fixed Amount.

Now he wants to deduct TDS on all three amount under Section 194J.

My question is whether the the payment i made to Roc is liable to TDS ?

and also all other amount is liable to deduct TDS

Regards

Sakshi Mittal

Reply Follow

1 Replies

Harsh Girish Patel (Final CA Student) 18 April 2012

Dear sakshi,

According to sec 194J of the IT Act reimbursement of out of pocket expenses will not attract TDS provided the bill is given seprately.

In your case payment made to ROC is in the nature of out of pocket exp as you are incurring such exp on behalf of your client & as you have also given bill seprately question of dedcuting the TDS u/s 194J will not arise.

I hope this will help you.