TDS rate for part time tutors in private limited company
This query is : Resolved
30 August 2022
We have a private limited company. It delivers online courses to students in India and abroad.
Some of our teachers are college and university students who work part time with us. They usually work for some months and then switch jobs.
They work online and almost never come to the office. Their monthly payments range between ₹8000 to ₹15000 depending on weekly commitments of work-hours.
How much TDS should we be deducting?
Can these part time teachers be regarded as Technical Service providers and then deduct TDS at 2% or Contractors and then deduct TDS at 1%?
Or should they be treated as professional service providers and TDS to be deducted at 10%?
As most of them do not have income tax files, and the amount is really small, we wish to deduct as little TDS as possible to reduce complexity. Please advice.
Some of our teachers are college and university students who work part time with us. They usually work for some months and then switch jobs.
They work online and almost never come to the office. Their monthly payments range between ₹8000 to ₹15000 depending on weekly commitments of work-hours.
How much TDS should we be deducting?
Can these part time teachers be regarded as Technical Service providers and then deduct TDS at 2% or Contractors and then deduct TDS at 1%?
Or should they be treated as professional service providers and TDS to be deducted at 10%?
As most of them do not have income tax files, and the amount is really small, we wish to deduct as little TDS as possible to reduce complexity. Please advice.
30 August 2022
Better to enroll them on as employee and deduct TDS u/s. 192, only when income above basic exemption limit.
30 August 2022
Thank you very much for your response.
However if we enroll them as employee then we have to register for PF and ESI as that will push the number of employees above the threshold. We do not want to do that as they work for short periods of time, and do not want PF to be deducted.
However if we enroll them as employee then we have to register for PF and ESI as that will push the number of employees above the threshold. We do not want to do that as they work for short periods of time, and do not want PF to be deducted.
30 August 2022
ESI & PF has some basic exemption limits, so check its applicability.
Otherwise, it depends upon the courses lectured. If any professional course, sec. 194 Jb will be applicable. For any other technical courses, sec. 194Ja may be applied.
Otherwise, it depends upon the courses lectured. If any professional course, sec. 194 Jb will be applicable. For any other technical courses, sec. 194Ja may be applied.
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30 August 2022
Thank you again.
These are Math classes for school students. I tried to find if these professional course or technical course online but could not find any information.
These are Math classes for school students. I tried to find if these professional course or technical course online but could not find any information.
30 August 2022
Yes, its debatable issue. As such these classes are held by experts/ well qualified in the subject, which are classified under professionals. So, TDS u/s. 164Jb would be more appropriate.
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