Compounding of TDS/TCS offences permits separate applications by company and responsible directors, with directors paying a reduced portion of the company fee. The Board clarifies that where corporate entities are prosecuted for TDS/TCS defaults, only those officers whose responsibility or consent/connivance/neglect is established are to be proceeded against. The company and each prosecuted director/partner must file separate compounding applications; each director/partner may be charged a compounding fee equal to ten percent of the fee determined for the company. Director/partner compounding applications will be entertained only after the company has applied and its case is found fit for compounding.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compounding of TDS/TCS offences permits separate applications by company and responsible directors, with directors paying a reduced portion of the company fee.
The Board clarifies that where corporate entities are prosecuted for TDS/TCS defaults, only those officers whose responsibility or consent/connivance/neglect is established are to be proceeded against. The company and each prosecuted director/partner must file separate compounding applications; each director/partner may be charged a compounding fee equal to ten percent of the fee determined for the company. Director/partner compounding applications will be entertained only after the company has applied and its case is found fit for compounding.
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