Issue of form 16

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Dhanalakshmi (Querist)
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03 October 2012 We are a liaison office in chennai, can we issue Form 16 to a employee who is working in Mumbai and receiving salary from head office. TDS will be paid by us with penalty in chennai liasion office. Can we issue Form 16 to him?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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03 October 2012 The disbursement officer or responsible or Controlling officer for maintaining the records, release of salary with TDS details can issue Form 16 to its employees.
It is immaterial whether the employee is working in any other location as long as the salary received from controlling office.

Dhanalakshmi

Dhanalakshmi (Querist)
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03 October 2012
One more query
We are not paying salary to him and he is also not an employee of our liaison office. can we issue form 16?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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03 October 2012 No, U can not issue form 16 as there is no employer and employee relationship exists.

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Dhanalakshmi

Dhanalakshmi (Querist)
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03 October 2012 Thanks.

if an employee joins in a Co. before date of incorporation of a Co. (April 2012) and he is getting salary from that company from July'11. Can that company is eligible to issue form 16 for the year 2011-12.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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03 October 2012 Incorporation of Company is procedural aspect which can not prevent to pay salary to its employees.

As long as the control of affairs of company is same till the date of actual incorporation i.e April, 2012, the salary from July, 2011 to March, 2012, there is no bar to issue form 16.

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Dhanalakshmi

Dhanalakshmi (Querist)
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03 October 2012 Thank u.....................

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