16 August 2009
I, S.Krishna Murty,Tax Consultant. I am giving services to one of my claint on monthly remunaration i.e Rs.5,000 P.M.They are giving remunaration as salary and not deducting any TDS.My query is any professional charges is it possible to show as salary without deducting TDS up to basic limit of Rs.1,60,000.Kindly clarify it.
16 August 2009
If as a consultant you are raising a Bill for Rs.5000 every month and if they are payin against that bill they cannot change the nomenclature of the account.
If you are getting a cheque and even you are not sigining the voucher also then they can treat it as they like, they can treat it as part time employment and need not deduct salary.
Please ask for covering letter or voucher or plese submit a bill for the same then you will know the reality.