Tds and pt for contract employee

Since you are hiring a professional on contractual basis..., TDS will be applicable on the same @ 10% provided the payments so done extend the basic exemption limit

Agree WIth Ananya

Agree with the Cooments given, The contract employee is gonna work in your company for development of software thus being in nature of technical services, Deduct TDS @ 10% under Section 194J

PT will not be applicable since there is no employer and employee relationship. But TDS will be applicable @ 10% once it cross Rs. 30000/- P.a. TDS will be deducted at a lower rate or Nil rate if the professional submit the Certificate (sec 197) obtained from the Income tax department.

TDS will not be at 10%. TDS will be at the rates applicable u/s 192. So that is to say as per the payment of salary. Basic exemption plus investment will be allowed as deduction and if then after salary exceeds total of basic exemption plus investment TDS can be made at the rates applicable.

Thanks all for overwhelming response.

Dear Mr. Arun Kumar Ghadei,

We are planning to give offer letter to the Contract Employee saying he will be working on Contract basis with us.  We will pay his remuneration in the form of company's check or tranferring the amount into his bank account (in other words he will be part of our company's payroll). In the above said conditions, will PT applicable for him?

Thanks in advance,

Prasad.

If you want to include that person in payroll then PT will be applicable..., or else TDS @ 10%. However such employees are not called contract employees... They are called as temporary employees...  But if i were in your place would have deducted TDS u/s 94 J as they are providing you specialized services...

Absolutely right..  you have to deduct PT as well you have to deduct tDs by seeing the basic exemption limit.. thanks

I was reading the above query raised by Manger regarding TDS & PT deduction for Contract Employees . Since its posted a 5 years ago  just wanted to reconfirm is logic still remains same . i.e. Employer will deduct PT for employees on roll and TDS for contract employees. 

Also I would like to know , does we have contact of 2 nature , one through the 3rd party & other one  directly with Contract employees. Is in both sceanrio contract employees are considered as employees . If so , as am employers we need to deduct PT or TDS for them 

Thanks, 

Smitha