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Help rqd

TDS / TCS 747 views 2 replies

Sneha

student

25 Points Posted on 07 June 2009

Please help me on two queries...

1. Suppose a company ABC is managed by another co. XYZ and XYZ has a mangement contact with third co. JKL

and so a dept. of ABC is managed by JKL

So, how would TDS on contactor JKL be paid in this case??

2. For contractual employees, is TDS deducted as TDS on salaries or TDS on contractors?

and If it is TDS on contractors then what is the amount subjected to TDS as in is it the basic salary

or the entire salary including benefits.

Replies (2)

madhur gupta

student/article

1022 Points Posted on 07 June 2009

for contractual employees i think t.d.s will be deducted as professional .......

in ur 1st quest.u just check that in whose name billing is n deduct the t.d.saccording to that

Satish

CA Final Student

479 Points Posted on 08 June 2009

JKL would be a management consultant and not a contractor as defined in section 194C and hence TDS u/s 194 J for professional service would be applicable. Under section 194J, there is no distinction made as contractor & subcontractor.

If Contractual employees are mean to be employees of a contractor, section 194 c invokes. If they are not as said, they must be the professionals on retainership basis. In such case, section 194J applies.