Comparsation between salary employee and consultants

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2013 Hi Friends,

I have recently joined as a consultant. they are treating me as a employee

when it comes to facilities they are saying that is not applicable.

can any one suggest me what is the difference between Salary employee and consultants

CHIDHAMBARA BALAJI

CHIDHAMBARA BALAJI (Expert)
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25 March 2013 Hai
First you have to check whether you got any employee id and PF Registration number during the time of joining
If you got treated as employee,please tell me what facitlites have not given to you(Generally the company will provide PF,Gratuity,Insurance etc)
If your roll was consultant,you cannot enjoy the benefits and you will not become as a payroll under company
Balaji.ACS,FCMA
chidhambara.balaji@gmail.com

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CA Priti Surana

CA Priti Surana (Expert)
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30 March 2013 The basic difference is that, if there is employer employee relationship between two person...then it attracts salary, and if there is no such relation, and two people are working on principal to principal basis, then it attracts professional fees.
Again, if it is a salary, TDS under section 192 will be deducted where as if it is a professional fee, TDS under section 194J shall be deducted. Provisions under both the sections are different.
Further P. Tax, PF, other provisions are also attracted in case of salary.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 April 2013 Both the experts are correct to a great extant but in case of salary you get payment on the basis of pay roll but in case of professional you have to submit your bill and if the total consideration in a year exceeds 10 lacs then you have to charge Service tax.

TDS as suggested by Priti is deducted under various section. In case of salary every month TDS is deducted but from professional it is to be deducted once the amount exceeds the minimum amount as specified for payment to professionals.

As regards facilities provided to you, kindly go through the letter of appointment issued to you. If it covers the facilities as provided to you then you are entitled and if not mentioned then the facilities mentioned in the appointment letter only be allowed to you.