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Tds to contractor

TDS / TCS 1450 views 8 replies

If a person appointed as an employee on a contract basis and services are availed from that person , then how much % of TDS  will be cut  in the following situations :-

a. Accounts work

b. Massage work

Replies (8)

if the payment is made to the employee it is as good as Salary

 

and TDS rate will be Average Rate Applicabe to salaried perons

TDS will be deducted as per section 192

First clarify that the person engaged was through outsourcing or directly appointed by the employer.  If he engaged by the employer then the rate of TDS is as per the  tax slabs, if he engaged through outsourcing conractor then the TDS rate is 1%, if the contract is with an Individual contractor, and 2% if the contract is other than  individual contractor.

AS YOU SAY APPOINT AS EMPLOYEE...SO THAT TDS WILL BE DEDUCTED U/S 192..TDS ON SALARY

By the way...what is a MASSAGE work?? Just Kidding!!

Anyways, TDS will be deducted as per Section 192.

TDS will be deducted as per sec 192 

 

If the Organisation in which you are working is treating your pay as Professional Fees and does not deduct Professional Tax then TDS rate will be 10% in other case as per slab.

Dear Mr.Jinendra,

Although your question is unclear but as per my understanding you want to ask about person hired by you but not in payrol, and taking bill from him as professional charges then treatment will be as below:

That person will charge monthly bill and you will pay him after deduction TDS flat 10% of the bill amount if billing amount is annual more than 20,000/- under section 194J

Otherwise as per all above given reply which have allready given to you.

Thanks

Pradeep Kumar Banduni


CCI Pro

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