14 May 2009
It is not possible that you have contract employee. They will be treated as contractor or professional as the case may be for the purpose of income tax.
19 May 2009
Hi I agree with Mr. Chetan If the employee is not on the payroll than it can not be treated as an employee hence TDS can not be deducted according to rules for TDS on salary. TDS should be deducted U/s 194C or 194J (depending upon the services provided by him)
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