Vickie (CA Job) (31 Points)
09 April 2014Hi Everybody:
We have a client that is into medical transcripttion. It is an LLP. The LLP gives out work to individuals who work from home, all within India only. The individuals are paid according to per line typed basis, so the payment varies every month, not a fixed salary. How should the payment be treated? As salary or payment for independent contractors? Does this payment attract service tax? Or is TDS applicable in these cases? Please advise.
Thanks in advance.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 09 April 2014
you need not to worry about service tax as this liability is of service provider.
your worry is only TDS and you are liable to deduct TDS @ 10% and show that expenditure as professional charges in your books of accounts.
it does not make and difference whether payer is LLP or individual and so on
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