18 April 2013
Is Data Entry Charges covered under sec 194J of TDS if written contract is not made ? Is make any difference if it is considered under sec 194C.
18 April 2013
MR. Prashant...Today mostly all the IT Companies are hiring the Data Entry Operators as their employees and not as Contractors. The Nature of Tds Depends upon the Agreement you are having with the Person. If you hire that Person as employee, you can go into the Scope of Section 192.
and The reason for the same is that there are few People who dont want thier Tax to be deducted and in that case you have the option to Hire them as employee. Else you have the Section 194C for the Deduction.
please review your answer, if a company is hiring a data entry operator as employee then where is the Q of contract?? He will be employee only. and if a person is employee then there is no Q of TDS u/s 194C of 194J. But that time this Q which is asked will not be asked. You are taking data entry operator as a post. But data entry operator is not a post in this Q as author asked about oral agreement. and the IT companies for which you are talking don't do it orally. if they hire an employee then whether on which post they are hired doesn't matter.
asking person is talking about agreement then it is obvious that data entry operator is not an employee. so 194C is best option.