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What taxes will apply?

343 views 6 replies

Deepika

89 Points Posted on 17 May 2021

Hi! I have a query. If an individual who is not on the payroll of a company ( not a salaried employee) offers professional services to the company for which he receives a monthly remuneration, which doesn't exceed INR 4,00,000/- annually. My question is:

1) Will TDS be deductible under Section 194J at 7.5%?

2) Can the individual claim a refund at the end of the year along with Marginal Relief on his Return of Income? What will be the process for the same?

3) Also will there be any GST that will be charged?

Replies (6)

CA GOURAV MITTAL

Practicing Chartered Accountant

76 Points Posted on 17 May 2021

1) Yes TDS is deductible at 7.5%
2) Yes, refund can be claimed at the time of filing ITR by applying rebate of 12500 if total taxable income is within prescribed limit
3) No GST will be charged by individual if he/she is not registered under GST...

Sivaramaraju G

Learner

2398 Points Posted on 17 May 2021

1) TDS will be applicable @ 10% from 01.04.2021.
it was 7.5% till 31.3.21
2) Yes, he is eligible for refund if his net total income below 5,00,000.
3) if he is a GST registered assessee and his total gross receipts exceeds 20Lakhs then he will charge GST. Because he is the service provider to company.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 17 May 2021

1) TDS will be deducted @ 10%

2) Yes refund can be claimed upto 12500 rupees

3) GST will not be imposed

Deepika

89 Points Posted on 17 May 2021

Thank you so much! You all have helped me immensely. Thank you once again.

veerendar singh

tax consultant

3306 Points Posted on 18 May 2021

Forget about the gst.
the company will deduct tds at 10% every month.
if the person is not earning any other income then the the entire amount of tds can be claimed as refund while filing itr.