TaxTMI 
TaxTMI 
Clarification for compounding of offences of directors etc. in the context of TDS/TCS related prosecutions.
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....Centre, Jhandewalan Extn. New Delhi. Dated : 24th, February, 2015 To, All PCCsIT/CCsIT/PDGsIT/DGsIT Madam/Sir, Sub : Clarification for compounding of offences of directors etc. in the context of TDS/TCS related prosecutions. I am directed to refer to the Guidelines for compounding of offences issued by the Board vide F. No. 285/35/2013 IT (Inv. V) dated 23.12.2014 Doubts....
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....ny for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. (ii) Sub Section (2) lays down that where it is proved that the offence was committed with the consent convenience of, or it attributable to any neglect of any director, manager, secretary or other office....
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....d members of AOP/BOI. 3. It is thought that all the director of the company and persons associated with it are not to be prosecuted for the offence committed by the company. Only those directors/persons, who were in charge of, and responsible to the company for the conduct of the business or to whom the consent/connivance/neglect etc mentioned in section 278B could be attributed, are to be proc....
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....ted offences, compounding fee at the rate of 10% of the compounding fee determined in the case of the company for compounding of the TDS/TCS related offence may be charged from each of the directors seeking compounding. 5. It is further clarified that in such cases, compounding applications of directors shall be considered only if the company itself has applied for compounding and its case has ....