TDs

TDS 641 views 4 replies

Gautam

Juniour Accountant

25 Points Joined July 2009

I joined a company on a contract basis and the contract period is 8 months (i.e may 09 to dec 09). I am geting 12,500 per month salary by cheque.

My question is that is I am liable to pay or can company deduct TDS from my salay? Please provide reason.

My mail id- gautamm.kumar @ gmail.com

Thanks & Regard

Gautam Kumar

Replies (4)

Guest

Hi Gautum,

If you are on contract basis then in this case company liable to deduct your TDS as contract basis i.e., 2.060%, but in case you rcvg salary slip in relation to your getting amount then it's treated you as on the basis of Salary.

In short, It's depend upon the company that is 'what they are consider you' - As a contrator or as a salaried person.

So, ask your company first ..!

NiteshUpadhyay

22 Points Joined June 2009

What is Tds explain me with Example

Ashish M

Chartered Accountant

2731 Points Joined January 2008

a person is deemed to be a contractor if he/she has some special skill to render to the other party..............

if u r kept under an employment for a limited period whiich is in the nature of a contract, then the payment shall be a salary payment - since in 8 months, the payment will amount tto only Rs. 1 lack. hence no Tax is liable to be withheld.

but if u r rendering any special skill out for which u r contracted for a llimited period, then such is a contract liable to be deducted TDS. the rate is 2.06% (2 % + edu cess 3%).