Tds on professional service
This query is : Resolved
17 March 2012
Presently our company is availing the service of some Animation Specialists on a contract basis. These guys are professionally qualified and are already working as premanant employees in another company. My query is
1. Under which category they will come for the purpose of TDS? (Whether they come under professional service or contractors or contract employees)
2. If they come under contract employees whether we have to follow the same procedure that we follow for calculating tds of regular employees?
1. Under which category they will come for the purpose of TDS? (Whether they come under professional service or contractors or contract employees)
2. If they come under contract employees whether we have to follow the same procedure that we follow for calculating tds of regular employees?
17 March 2012
For employee there must be a relationship of employee and employer.So TDS on salary is not applicable. Though he has a contract for services, the rule of substance over form will be applicable and TDS u/s 194J i.e. professional services will be applicable. Generally people think that if we have contract then 194C is applicable, one thing need to be cleared that everything may have an agreement of contract but the nature may fall rent agreement contract, professional service contract or works contract so each contract agreement will not come under perview of 194C
Message likes :
2 times
17 March 2012
Thank you for your valuable advice sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Gift Received from nonblood relative
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Rental income gst and it purpose
- Management System (IMS)
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
