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?