Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 If a public sector undertaking treats its employees as contractors, because of the bond agreement made with the employees during their appointment, in which category the employer deduct TDS on the amount of salary paid to them?
okay we will deduct it according to Sec 192. but if their total income for the financial year dont exceed the exemption limit and the aggregate payment made to them exceeds rs. 75000 during the f.y 2011-12 are they liable to tax as per sec 194C as there is a contractual agreement?
Thanking You

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 August 2012 The nature of payment as well as work as described by you seems to be in the form of salary to employees. It matters. It is beneficial to the concerned employees also.
Deduct TDS U/s 192.

Message likes : 1 times

SANYAM ARORA

SANYAM ARORA (Expert)
Follow

04 August 2012 TDS will be deducted u/s 192

Upgrade to CAclubindia Pro. Subscribe Now!

Yogesh Agarwal

Yogesh Agarwal (Expert)
Follow

04 August 2012 Agreed with the Experts...

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
Follow

05 August 2012 salary concerned comes under sec 192

CA Manikandan.A.V

CA Manikandan.A.V (Expert)
Follow

05 August 2012 If there is no specific employer-employee relationship mentioned in the bond i.e., only contractual terms, if the service involves professional expertise on the part of the service provider, TDS to be deducted u/s 194 J, otherwise u/s. 194 C.