Tds

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ARUN KUMAR MAITRA (Querist)
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06 July 2012 If an employee works on contract basis for a certain period say two years in a Company and his remuneration is paid by way of monthly salary, whether TDS from his income should be deducted u/s 192 or 194J of the Income Tax Act?
If he has worked for four months in a Parent Company and five months in one of its Sister Company,
Whether his Salary and TDS paid/deducted by the Parent Company be also considered by the Sister Company while calculating his TDS for the same financial Year?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 July 2012 1. Since the person is working on contractual basis, employer-employee relationship DOES NOT exist.

Accordingly, TDS will be deducted u/s 194J.

2. The sister concern will deduct TDS only on the amount paid by it and will NOT consider the amount paid by the parent company.

ARUN KUMAR MAITRA

ARUN KUMAR MAITRA (Querist)
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06 July 2012 WTD/MD in PSUs are engaged on contract basis normallty for 2/5 years. Their TDS are deducted u/s 192.

Moreover , in the case cited by me in my query, the said person was engaged on a pay- scale with P.F.,LTC,Gratuity benefits.Thefore, there was a clear cut employer-employee relationship, though he was working on contract basis.

Kindly give your comments on the above situation.

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