Employee salary and tds

TDS 460 views 2 replies
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Director
178 Points Joined August 2011

Hi All,

Please study the following case and let us know your opinion : 

suppose a person X is based in Assam and is working for pvt ltd company Y from his home in Assam. Closest office of the private limited company Y is based in Delhi. Company Y is paying that person 16,000 Rs per month.

Is it legal or compliant if company Y show person X as full time employee of the company on payroll ? Person X has no other income source.

Or company Y has to show that person X as contractor and hence TDS will be applicable ?

 

- Divya

 

 

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On 09 November 2013 at 10:03 Report
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Believe!! Live your dreams!
33521 Points Joined November 2008

Hi,

 

Does co. has issued appointment letter as an employee? Whether Monthly payment is made on the basis of his attendance to work?

 

If yes then yes he can be shown as Home Based Employee.

 

Thanks//VaibhavJ

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On 09 November 2013 at 11:13
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Director
178 Points Joined August 2011

Yes, regular monthly payment has been made to him and appointment letter is issued to him.

Is appointment letter a legal document to be kept in record  or is it just for reference of employer and employee ?

 

- Divya

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On 09 November 2013 at 17:59


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