If a person giving services to a Co on contract basis 1 yr and renewal for next 1 yr after successful completion. As per contract, employer is giving 2 days earned leave in a month and deducting EPF @ Rs 1200/- p.m. Presently Co is deducting TDS @ 1% u/s 94 c . I have suggested to deduct TDS u/s 192 B " Salaries other than govt employees".
Is this is correct? In above condition which section will be imposed.
Dear Shankar,
Under the provisions of section 192, any person responsible for paying any income chargeable under the head “Salaries” is required at the time of payment to deduct income-tax from the amount payable.
if the employer employee relationship is established then TDS is required to be deducted under section 192B only and not under any other section. It does not matter whether the employer employee relationship is contactual or not.
So in my opinion your advice is correct. However, litigation is possible.
Regards
Rohit Gupta
RHT1203 @ GMAIL.Com
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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