liability to deduct tds on payment to retainer

This query is : Resolved

CA Abhishek Singh (Querist)
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29 November 2010 hello everyone,

i m doing audit of a pvt ltd company. some of the employees like HR manager and other workers they show as retainer and payment to them are debited to professional charges and tax is decuted at the rate 10%

actually they are on salary.

so professional charges(salary) calculation of every month is done on the 7th of the succeding month.

when tax should be deducted i.e. on the last date of previous month or on 7th of succeding month.

CA. BHAVIK DILIPBHAI MEHTA

CA. BHAVIK DILIPBHAI MEHTA (Expert)
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29 November 2010 Is the Provident fund or professional tax or FORM No. 16 being issued to them. These are some of the criteria for deciding the nature of payment. If PF/PT or Form No. 16 is being issued then it is salary otherwise professional fees. TDS on salary for the period from April to March is deposited to the credit of the Government on 7th of every month. TDS on professional is on 7th of every month & for TDS deducted on 31st March is 31st May.