tds on salary

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saraswathi

saraswathi (Querist)
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28 August 2017 if the employee working on contract basis. what is the TDs rate under which section.

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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29 August 2017 If treated as contract than TDS@1% u/s 194C OR If treated as employee than TDS to be deducted u/s 192 as the slab applicable to individual

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CA Sheonarain

CA Sheonarain (Expert)
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29 August 2017 TDS on salary shall be made under section 192. whether employee is working on permanent basis or contract basis.
calculation will be made on the basis of slab rates.

sivaram

sivaram (Expert)
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29 August 2017 Employee working on contract basis is not on the rolls of the company so the bill submitted by the vendor ie on manpower bill deduct tds @1% or 2% as the case may be under section 194 C SEC 192 will not apply to a contract based employee

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CA Sheonarain

CA Sheonarain (Expert)
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29 August 2017 Since query asked was as "if the employee working on contract basis. what is the TDs rate under which section?"

There is no question of hiring of manpower through a contractor.
If labor is hired through contractor then sec 194c will attract..

Labor hired directly by employer on contract basis will be covered under sec 192.

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sivaram

sivaram (Expert)
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29 August 2017 I accept the reply of Mr CA Sheonarain

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