Income tax paid on Salary paid in outsourcing services

Vijay Patnaik (Management Consulting) (287 Points)

27 June 2007  

Dear All, I am an outsourcing consultant. Companies keep their personnel on our roll. But I have found that now they deduct TDS even on the salary component that they are paying to us.

e.g. say Salary is 10,000 pm

My bill is like :

Salary Component       = Rs.10000

Service Charges @ 20%= Rs. 2000

Total =                         Rs.12000

 

Now in this case the Company(client) deducts TDS on Rs.12000 rather than on Rs.2000 (which is my income). The salary is the exact amount that I have to pay/transfer to the employee.

Advise, how do I handle this