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Form no 16

TDS / TCS 182 views 1 replies

1. I was appointed in company A which is PVT LTD Company  ( due to this copy of My CV and my experience certificates are with (A)

2. My services are terminated by A and they have appointed me in Company B  

3.Company B is also PVT LTD company and wholly owned by Company A

4.Company A and Company B both are PVT LTD companies with Separate PAN NO,TAN NO,PF NO 

5.Company A is using my CV and Experience Certificates in various GOVT projects and  claiming reimbursements my salary as if I am employee of Company A and paying this salary to me directly from the bank account of Company A (without crediting this money to B Company account and then B company to me)

7.Though my salary is paid from Company A bank account directly, Company B issues me Form No 16 and My PF is deducted and credited by Company B.

8.Company A has never issued me form No 16 nor TDS is deducted by Company A

Now my query is

1. Paying salary directly from the bank Account of company A  to the employee of B  is as per tax laws? 

2. I have not paid any salary by company B from its own bank account  for last one and half year and still company B is giving me form 16 deducting tax at source

is this practices of company A and Company B  is correct as per IT laws?

Can I insist company A for issuing form No 16 / Form no 16A for the payment made? if not given by company A then how to tackle this with help of IT department.

Replies (1)

As on paper you are emloyee of comany B, having understaning between both the companies to reimburse the payment of any job work.


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