Tax deduction one freelancer paying to another freelancer

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This query is : Resolved

Pooja (Querist)

19 April 2014 Hello Sir,

I am freelancer and I am planning to hire another freelancer to help me with my work. I am planning to pay this person Rs 35,000 per month. Below are my queries

1. Do I need to deduct TDS from his payment as I am freelancer and don’t have TAN.
2. Can this person pay advance tax every quarter to make me free from deducting his TDS.

Awaiting for your excellent response.

Regards,
Pooja

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 April 2014 you are required to deduct TDS only if you are liable for tax audit. otherwise you are not required to deduct TDS on such payments.

Pooja

Pooja (Querist)

20 April 2014 Hello Nikhil,

Thanks for your reply, I would like to get an idea in what all cases I will have to do such deduction is it decided on my income or my status of being freelancer or company or proprietary firm.

Regards,
Pooja

My query is still not resolved but by mistake I have selected resolved from the drop down so I request more comments from experts over here.

Nikhil Kaushik

Nikhil Kaushik (Expert)

20 April 2014 for individuals/proprietor (where tax audit is not applicable) tds is applicable only for salaries and nothing else.

for companies all tds sections are applicable.

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