Contractual appointment

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This query is : Resolved

vipin goyal (Querist)

16 June 2009 Hi all,

I would like to know the tax consequnses of contractual appointment, i.e company pays u a lumpsum without any statutory deduction like PF, HRA, ESIC, etc. and deducts TDS at the rate of 10%+surcharge as applicable to proffesional fees...

can anybody tell me how to effectively plan tax liablity in this case. also as the employer has defined working hours, no. of leaves etc. isnt it a employment ?
Contract period 2 years.
your reply is appreciated....

Thanks

Vipin

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)

16 June 2009 No, you cannot define it employment every time. For employment, the existence relation ship of employer employee is must. In ur case, the relationship is principle to principle basis and ur client is deducting TDS under section 194-J treating u as professional.

You may claim this amount as your professional income and may deduct all possible expenses like, conveyance, car petrol, repair, stationery, depreciation etc. and ultimately you will be in benefit.BEST OF LUCK

vipin goyal

vipin goyal (Querist)

17 June 2009 Thanks bharat,

Vipin goyal

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