TDS- 194C or 192B

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This discussion clarifies TDS applicability for contract employees. If employees are on the client's payroll and receive employee benefits like PF and ESI, it suggests an employer-employee relationship. In such cases, Section 192 is generally considered. However, for NGOs with project-based contracts, Section 192B might be relevant depending on the specific agreement structure.

Khushboo Gupta

Khushboo Gupta (Querist)

06 December 2023 One of my client has hired skilled and semi skilled employees on contract basis and these employees are on payroll of client only. Employees are receiving benefits as per employee-employer relationship like PF, ESI and other allowances as well. Under which section TDS should be deducted? and if there is any judgement in this regard

Manish

Manish (Expert)

06 December 2023 u/s 192

Khushboo Gupta

Khushboo Gupta (Querist)

06 December 2023 It is a NGO who carries out agreement with its employees on contractual basis considering the project timelines based on MOU signed with donors. In this case, 192B will be applicable?

Manish

Manish (Expert)

06 December 2023 Yes.

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