I am starting as a contract employer. I will have first batch of two employees who will be working for a company. The salary of these employees will be 10-12000 per month. As I have just started, I would like to keep tax liability away until I scale up. I would like to know if I need to pay any tax on behalf of the contract employees (e.f. TDS etc). Is there a regulatory way to avoid taking up tax deduction related work at this stage. Any more inputs will be appreciated. Thanks in advance for guidance.
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Taxation of contract employees and contract employers
Replies (3)
Since the payments to them is in form of salary and their gross salary would be below taxable limit, there's no requirement to deduct TDS
@ Rajesh
The amount from whom you receive is towards manpower supply service contract. So the payer will deduct TDS @ 1% (proprietory concern) under 194C.
From this amount you will pay salary to employees whose income being below taxable limit, no TDS deduction you have to make.
The amount from whom you receive is towards manpower supply service contract. So the payer will deduct TDS @ 1% (proprietory concern) under 194C.
From this amount you will pay salary to employees whose income being below taxable limit, no TDS deduction you have to make.
Thank you Rama and Pravin for quick reply.
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