Help required: Exemption from TDS deduction

This query is : Resolved

Govind (Querist)
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25 October 2010 Dear All,

Ours is a retail company engaged in retail business activities of multi brand beauty care products with more than 74 stores across India in shop in shop- modern trade format.

We have around 70 people working on retainership basis i.e. on professional fee. As per the existing rule, we are deducting 10% TDS from remuneration payable to them (for PAN Card holder) and 20 % (for non PAN card holder).

This front line sales people are lesser educated and they don't have PAN card too. It is becoming difficult for us to manage this operationally.

Is there anyway we can exempt these people from TDS deduction? Their monthly average income is 6500

I expect a positive help from all of you

Regards
Govind

taxindiaconnect

taxindiaconnect (Expert)
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25 October 2010 Dear within the existing law no positive help seems to be possible till you change the retainer ship payment to any other payment mode like salary. Since the salary income would be less then 160K per annum in these cases, no need to deduct TDS. Other alternative is that these people procure a non deduction of TDS certificate from IT department. But that option is also not possible as you mentioned that the personnel are not even able to apply for PAN which is a very simple process