Tds applicability on temporary employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2012 Is TDS applicable to temporary employees (who work for 2-3 months) at Rs.15000 per month or above. Actually, We had 16 such employees, who were originally employed on training & were to be confirmed after 3 months.These employees didn't fall under ESI deduction but their earning was also below the per annum threshold limit for TDS (if they were not confirmed. Eventually only 3 of them were confirmed and TDS was deducted from these 3 regularly after they were confirmed But for the rest 13, we have neither deducted TDS as it becomes applicable only if they are confirmed nor have we deducted ESI. Is This right or will we have to deposit TDS for the rest 13 employees also?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 December 2012 TDS on temporary employees will be deducted u/s 194C.

The limit u/s 194C is one time payment of Rs. 30,000 or aggregate payment of Rs. 75,000 during the year.

Employees who work for 2-3 months receive an amount less than both the limits.

Accordingly, TDS is NOT required to be deducted.

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