Accounts related matters

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This query is : Resolved

subhash (Querist)

26 June 2007 If iam deputing my empoloyee to one of my sister company,will it be my income if the salary is paid directly by the latter company to the employee.

Will there be any change if the PF is paid from my end.

CA VINOD JAIN

CA VINOD JAIN (Expert)

26 June 2007 If ur company is not service providing company it will be better for u , that u reduce the salalry in ur company and balance salary will be paid by another company . Pf if applicable we have to pay.

SUBRAMANIA SARMA G

SUBRAMANIA SARMA G (Expert)

28 June 2007 Normally the liability for the payment of salary to employee is depend onthe contract of employment. However where the employee has deputed to another organisation, [ which is prelevant in goverment organisations or government companies called on deputation], the liability for the salary is on the company to which the services are rendered and in your case, the liability would be on the sister company. The provident fund contributions can be made to the account of the employee in your organisation and need not be changed to the new company. It is advisable to have communication in this regard when the employee has been sent on deputation, otherwise, the liability for the TDS would be on your company.