Part Time employee
This query is : Resolved
09 July 2025
Please help to take a decision on the following practical situation.
A is already working as a full time HR Manager in a company X where he has Saturdays off.
A gets an opportunity to work as a consultant with another company Y to help the company in screening the candidates, inviewing and selecting them for this company for various positions on a monthly salary of Rs 32000/- for a period of 3 months from April to June 2025.where he has to go only on Saturdays. He represented to that Company that he is not working anywhere else except this part time job and insist the company not to deduct any TDS on the salary paid to him and if at at all he is liable to TDS that has to be under section 194(C) and the threshhold for that in financial year is 100000 more than actually he got paid for April to June and not u/s 194J as he is not a professional for the purpose of section 194 J . But the accountant of the Company differs with him and wants to deduct the TDS u/s 194 J as a professional.
The queries are.
1. Can Company Y employ A as a part time employee if he is already working with Company X on full time employment and in which account head his salsary should be booked by company Y as a salary or Professioanl Services/Consultancy charges.
2. Can A who is already working on full time job in company X work as a part time with Company Y by declaring the same to Company Y.
3. What will be the TDS liability of Company Y on payment made to A for part time when it is shown that he is already working in full time in Company X and where he is not working any where else other than part time in Company Y
4. If Y Company treats A as a profesiaonal.consultancy charges then TDS will be dedducted u/s 194C or sec 194J
Please share your views.
Regards
P C Joshi
assuiming
A is already working as a full time HR Manager in a company X where he has Saturdays off.
A gets an opportunity to work as a consultant with another company Y to help the company in screening the candidates, inviewing and selecting them for this company for various positions on a monthly salary of Rs 32000/- for a period of 3 months from April to June 2025.where he has to go only on Saturdays. He represented to that Company that he is not working anywhere else except this part time job and insist the company not to deduct any TDS on the salary paid to him and if at at all he is liable to TDS that has to be under section 194(C) and the threshhold for that in financial year is 100000 more than actually he got paid for April to June and not u/s 194J as he is not a professional for the purpose of section 194 J . But the accountant of the Company differs with him and wants to deduct the TDS u/s 194 J as a professional.
The queries are.
1. Can Company Y employ A as a part time employee if he is already working with Company X on full time employment and in which account head his salsary should be booked by company Y as a salary or Professioanl Services/Consultancy charges.
2. Can A who is already working on full time job in company X work as a part time with Company Y by declaring the same to Company Y.
3. What will be the TDS liability of Company Y on payment made to A for part time when it is shown that he is already working in full time in Company X and where he is not working any where else other than part time in Company Y
4. If Y Company treats A as a profesiaonal.consultancy charges then TDS will be dedducted u/s 194C or sec 194J
Please share your views.
Regards
P C Joshi
assuiming
10 July 2025
1 It's only consultant job for a period of 3 months company Y can employ.
Treat it as consultant payment deduct TDS under section 194JA 2%.
2 Yes.
3 &4 Deduct TDS under section 194JA 2%.
Treat it as consultant payment deduct TDS under section 194JA 2%.
2 Yes.
3 &4 Deduct TDS under section 194JA 2%.
10 July 2025
Hello Mr Joshi
There is no employer employee relationship between Mr A and Co Y and whatever services provided are fixed duration consultancy services. so in this background below is answer to your queries
1. Company X and Mr A Employer-Empolyee --> salary
Company Y and Mr A Consultancy (TDS under section 194J)
2. No it is not an employment (there is no employment contract and working only on holidays
3. Professional and technical service TDS 194J @ 10%
4 TDS Under 194J (194C will be ressideuary section for TDS deduction)
There is no employer employee relationship between Mr A and Co Y and whatever services provided are fixed duration consultancy services. so in this background below is answer to your queries
1. Company X and Mr A Employer-Empolyee --> salary
Company Y and Mr A Consultancy (TDS under section 194J)
2. No it is not an employment (there is no employment contract and working only on holidays
3. Professional and technical service TDS 194J @ 10%
4 TDS Under 194J (194C will be ressideuary section for TDS deduction)
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