Hi, for an individual who is employed by a software company as a contract consultant (directly by the company and not through a contract agency) and is paid monthly based on an hourly billing rate and hours worked during the month: (i) Is the individual's income treated as business income or a salary?, (ii) If it is treated as business income, should the individual maintain a book of accounts and be audited?, (iii) if an audit is required, what is the minimum annual income that would trigger an audit for the individual?, (iv) What ITR form should the person use? Is it ITR 4? and (v) Does this form of employment attract service tax?
Fyi, the employer is deducting TDS of 10% under Section 194J. The individual is an independent contractor and is not registered as a company. Thanks a lot for your response.
Regards,
S. Krishnan
CAclubindia
