Hi Everyone.
Thank you for your responses. I have few additional queries with respect my earlier query (reproduced below).
1. The assistant is to be hired for personal work. If the person decides to pay the assistant from his own pocket what heading should he use in his books of account
a. If he shows it as salary then is he liable to deduct Profession tax, TDS, etc. on such payment?
b. If he shows it as profession fees then is he liable to deduct TDS on such payment?
c. Should the amount directly be transferred to other withdrawals?
2. Is the person required to get himself registered with some tax authority (especially if shows the payments as salary / fees)? If yes, which ones?
3. What returns will be required to be filed by the person hiring the assistant?
4. Is there any limit specified in the act so as to skip the requirement of such registration(s) / filing(s)?
5. Would it be viable for the person to enter into a written contract with assistant (especially if the payment is shown as professional fees?)
6. What additional care will have to be taken by the person hiring the assistant?
For those who would be reading this post for the first time. The original query is provided below
“I have a certain query and would be highly obliged if anyone could help me with the solution.
A director of a private limited company wants to hire a private assistant / secretary for himself who would help him in his office related duties and also take care of his personal records. (His other sources of incomes include income from firms as a partner, rental income, capital gains and bank interest).
What modes of payment (salaried / fees, etc) are available to him for hiring such a person considering the following additional details:
1. The private limited company is currently not making enough profits to justify such a hire.
2. If the person is hired and paid for by the firm(s), the other partners may object as he would be working exclusively for one partner.
One of the payment options is that he can pay the person from his own pocket. However this will be shown as personal withdrawals and cannot be claimed as expenses.
Request if you could provide with additional solutions available for the above.
Also if such payment can be shown as an expense, what additional steps are to be taken with regards the same."
Thank you in advance.
Thanks and Regards,
CA CSJ
CAclubindia
