Contract with Employee

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 September 2010 Mr. X is Proprietor running business of developing Brands for pharmaceutical company. In his firm there is high employee turnover ratio & to avoid PF, PT, Bonus & leave encashment he made written contract with employee & deducting TDS @2% now my question is whether can employer make contract with employee & at which rate he should deduct TDS @2 % u/s 194c or 10% u/s 194J?

04 September 2010 yes. you can enter agreement with employees no restrictions on that, but TDS will applicable based on the employee work nature

If professional - 194J, otherwise 194C


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