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TDS - Contract Programmers

TDS 549 views 1 replies

Suresh

COO

29 Points Joined February 2010

Hi,

If I deploy Contract Programmers in a IT Consulting company and invoice them including Service Tax. The company (Client) should deduct TDS considering Invoice as (1) Professional Services OR (2) Contract Labour?

Professional Services - 10% TDS, Contract Labour - 1% TDS

I pay Salary of Rs. 30,000 to Contract Programmer and Markup by Rs. 5,000/- towards my services charges. If TDS is at 10% then I will be crippled for cash assuming I collect Invoice after 60 days.

Best Regards,

Suresh

Replies (1)

CMA.Baskar.V

Cost Accountant

400 Points Joined March 2009

Please refer your contract terms and conditions, if programmers deployed on call basis to your client and if your charge on call basis, it will come under preview of professional charges. Suppose, your contract terms in period basis, it may come under preview of contractor.

If you provide full contract terms and condition details, we can come one conclusion