TDS ON REMUNERATION PAID TO A RETIRED EMPLOYEES

This query is : Resolved

Sanjeev Kumar Varshney (Querist)
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13 March 2008 WE HAVE MADE AN AGREEMENT WITH ONE OF OUR RETIRED EMPLOYEE WHOC IS AN ADVOCATE AS REATINER AND ARE PAYING RS 70000/- PER MONTH. WE ARE NOT PAYING ANY OTHER BENEFIT TO HIM EXCEPT HE MAY NE ALLOWED 30 DAYS LEAVE AND CAN TRAVEL IN COMPANY ACCOUNT. PLEASE ADVISE UNDER WHICH SECTION TDS SHOULD BE DEUCTED ? WHETHER U/S 192 / 194 9C ) / 194 ( J )?

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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13 March 2008 194J

R.V.RAO

R.V.RAO (Expert)
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13 March 2008 A RETIRED EMPLOYEE IS ONE WHO IS NO MORE ON THE PAY ROLL OF THE COMPANY UNLESS YOU HAVE ISSUED A LETTER OF APPOINTMENT AND REEMPLOYED HIM AGAIN.
IF THIS BE THE CASE THIS IS A PROFESSIONAL FEES ATTRACTING TDS UNDER SEC 194J@10.03%.
R.V.RAO

Sanjeev Kumar Varshney

Sanjeev Kumar Varshney (Querist)
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14 March 2008 Mr R.V.Rao
He is hust retired after 58 years. We have appointed him on Contratual employement basis and he is not allowed to work for others.He will come to our Office regularly.

Does issuing such letter to him treated as employee of the company ?
Some consultants are of the opinion that he should be treated as employee.How we file TDS return?
Please advise .

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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14 March 2008 SINCE HE IS NOT ON THE PAYROLL OF THE COMPANY HE CANNOT BE THE EMPLOYEE OF THE COMPANY

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