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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2015 A person namely Vinay who is a part time tutor of an Online Academic Paltform (OAP) giving his PAN no. for recieving the fees from OAP.
With passage of time, he is employed in Morgan Stanley as a salaried prson with package of Rs. 10 lakh. so with increased workload he outsources his work to his friend Ajay for providing online tution clases on behalf of vinay . Vinay hides such endorsement from OAP and OAP gives respective fees to Vinay only.
Vinay after recieving such amount after tds keeps with hmself 5 % as comission and remit the remaining balance to Ajay.
Vinay at the year end prepare his computation including the net amount recieved from Morgan Stanley After tds deducted plus amount from OAP (small amt as a part time tutor).
My QUES. is

(1) Find a way in which manner Vinay will Remit the amount recieved from OAP (OAP give fees to Vinay for his work done which is actualy being done by Ajay) to Ajay for his work done as he is not a legal tutor registered with OAP.

(2) whether tax @ 30% will be deducted from the whole income of Vinay(morgan stanley+OAP) including the one recieved from OAP or it will not be considered for computing tax as tds being deducted.

Ankur Singhal

Ankur Singhal (Expert)
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15 June 2015 In my opinion viney should give amount to ajay in cash only. as ajay is not legal tutor registered & any payment made through the banking channels would anytime may crate the problem between Viney & OAP.

The tax on Stanley & OAP would be deducted as per slab rate & not @30% flat.
the fees received from OAP is not the business income it is the professional fees.

Rupesh Jain

Rupesh Jain (Expert)
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16 June 2015 they can make agreement in that they mention that what amount Vijay get and make by cheque and its may employee or professional services tds u/s 192 or 194J

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Rupesh Jain

Rupesh Jain (Expert)
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16 June 2015 they can make agreement in that they mention that what amount Vijay get and make by cheque and its may employee or professional services tds u/s 192 or 194J