Hi Sir / Madam ,
one employee was placed in our company by consultancy , so we need to pay 4 % of employee CTC
how much TDS to be deducted for pYment to consultancy and in which section it should be paid , I mean nature of payment in TDS portal
thanks and looking forward for valuable answer
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TDS which Section
Replies (10)
Its placement/professional services..... TDS u/s. 194J
CTC full form ?
CTC full form is Cost To Company.
It means total salary package and benefits received by employee in a year.
Consultancy is covered under 194 J at 10%
it's a recruitment company and tds to be deducted 2% I have read in one of the article .
please give some input on this so that correct tds to be deducted
please give some input on this so that correct tds to be deducted
As per circular 715 dated.. 08.08.1995
Ans:12 .... Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work. Payments to recruitment agencies are in the nature of payments for services rendered. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act.
thank you very much sir
Most welcome, Dear ....
sir ,small clarification if no contract exists ,on word of mouth if it's done . same to be followed or any changes
" so we need to pay 4 % of employee CTC " ........
The nature of payment leads to acceptance of professional service, unless any other cause exist.
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