26 August 2022
We have furniture manufacturing unit. Due to more work order we are not a position to produce more product Intime. Wish to appoint a third party may be contractor or subcontractor to finish the product for our requirement by giving his / her employee.
My queries as below. 1. Whether a formal Contractual agreement is required or not? 2. Is TDS & Service Tax applicable on the transaction if yes how much. 3.Outr Firm is registered under PF & ESI Act . Benefit of these are to be given to the manpower hired by us or his / her? 4. If the Contractor having no income beside whether he will be file his tax return as Individual or other way.
26 August 2022
1 Formal contract required as tax audit applicable to you. 2 TDS applicable. GST applicable in case contract value exceeds 20 lacs. 3 Yes. 4 File ITR as individual.