22 March 2018
My Friend has 200 workers for his business. the workers are divided into 4 groups. each group comprises 49 members and a "head person" for that group.the head person communicates with the workers and get them to work daily, for that the head person gets some commission and the workers get wages.at the end of every month my friend transfers Rs.2lakhs(workers wages+headperson's commission) from his "Current Account" to the head person's "Savings Bank Account". the amount will become RS.24Lakhs at the end of the year.my question is "will there be any problem for "the head person" from "Income Tax Department" because he/she has "Savings bank account" ? Please give a solution for this. Thanks....
22 March 2018
Problems mean.,
The person will be treated as Business Nature...
The Labours are company's employee then the transaction is wrong.
If labours are under the Head Labour then the head labour is your supplier and He can deal the sub labours are his employees....
CAclubindia
