Tds on service fee/salary

Hi,

Tell him to submit lower tds deduction certificate from IT dept for deducting lower TDS else on whole amount to be paid deduct TDS @ 10%.

Hello Sir,

you are paying salary to him  so you required to deduct TDS according to section 192  on average rate. Because it is the duty of Employer to calculate estimated salary of employees and according to you your employee yearly salary is 3,00,000. For e.g- his salary 25000 per month.then employer calculate  his total income is 300000  and 200000 is exempt under Income Tax Act, 1961.then he will deduct TDS @ 10% on the remainning Income that is 1,00,000*10%=10,000.monthly deduction of TDS is 10000*1/12 i.e Rs.833.

Hello,

Amount TDS depends upon relationship btwn u both.

if u consider him as an employee and he is in payroll then rates as per sec 192 applicable.(As said by Ajay)

If u consider him as a consultant flat 10% rate is applicable for professional charges.