Retainer Salary Paid

This query is : Resolved

Gurmeet Singh (Querist)
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09 September 2009 Hi All,

I am having some college students working for my company doing marketing activities and I am paying them fixed monthly amount as retainers salary to them. But now my auditor is of the opinion that the Account Head "Retainer Salary" attracts PF & PF. so please suggest me under what head i should put the same so as to avaiod any TDS, PT or PF.
Thanks in Advance.

Gurmeet R

Kaustuv

Kaustuv (Expert)
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10 September 2009 give them professional fees. PF and PT won't be applicable. But TDS however would be applicable subject to fufilling the conditions.

Gurmeet Singh

Gurmeet Singh (Querist)
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10 September 2009 Hi,

Thanks champ for your reply. Total amount paid to them is not more than Rs.38,000.00 till March 31, 09

So whether it will attracts TDS?

Thanks,

Gurmeet R

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Kaustuv

Kaustuv (Expert)
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10 September 2009 Hi,

Thanks.

Please note that where the aggregate of the amounts paid/credited or likely to be paid/credited to a single party exceeds Rs.50,000 during the financial year, TDS has to be made.

Gurmeet Singh

Gurmeet Singh (Querist)
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10 September 2009 Hi,

Thanks for your valuable updates.

Gurmeet R