Tds for contract employees
This query is : Resolved
29 April 2014
Dear Seniors,
Please provide the guidelines for contract employees tds calculation methods.
1. Need to know 1 % or 10% TDS is applicable for contract employees.
2. Hope 3% cess is also applicable on Tax
Please clarify the above.
Thank you...
Please provide the guidelines for contract employees tds calculation methods.
1. Need to know 1 % or 10% TDS is applicable for contract employees.
2. Hope 3% cess is also applicable on Tax
Please clarify the above.
Thank you...
29 April 2014
depends.
if the contracted employee is providing professional services like, engineering, accountancy etc, deduct under 194J at 10%. other employees providing activities like unskilled labor etc, deduct under 194c.
2. no cess is not applied.
if the contracted employee is providing professional services like, engineering, accountancy etc, deduct under 194J at 10%. other employees providing activities like unskilled labor etc, deduct under 194c.
2. no cess is not applied.
29 April 2014
Thank you Mr. Nikhil Kaushik.
Small doubt on your above reply. Hope the same 10% tds is applicable for 194C as well.
Also I have couple of doubts:
1. as per the income tax slab rates upto 2 Lac tax is nil. The same logic will apply for contract employees.
2. If contract employees earns less than 2 Lac per Annam, still need to deduct 10% tax
3. If yes, why and what is the reason for same.
Thank you.
Small doubt on your above reply. Hope the same 10% tds is applicable for 194C as well.
Also I have couple of doubts:
1. as per the income tax slab rates upto 2 Lac tax is nil. The same logic will apply for contract employees.
2. If contract employees earns less than 2 Lac per Annam, still need to deduct 10% tax
3. If yes, why and what is the reason for same.
Thank you.
29 April 2014
Hi Dhanashekhar,
First the rate of TDS u/s. 194C is 1% if payee is individual or HUF and 2% for other payees.
The exemption limit of Rs.2 lac p.a. is to be considered only while deducting tax u/s. 192B (i.e. salary payment)
Hope your all doubts will be clear now.
Regards,
Devanand
First the rate of TDS u/s. 194C is 1% if payee is individual or HUF and 2% for other payees.
The exemption limit of Rs.2 lac p.a. is to be considered only while deducting tax u/s. 192B (i.e. salary payment)
Hope your all doubts will be clear now.
Regards,
Devanand
29 April 2014
Devanand had covered your follow up queries...if you have further doubt, shoot it right away..
30 April 2014
Thanks Mr. Devanand for your clarifications.
Believe below is not applicable for 194J
PT & LWF
Believe below is not applicable for 194J
PT & LWF
30 April 2014
Also It would be grateful if you could share the guidelines or document. Or pls let me know where could I get this guidelines
ie.,
1. Sec 194C - Engineering, Accounting - 10% Tds
2. Sec 194J - others, unskilled labour - 1% Tds
3...
4...
Thanks in advance.
ie.,
1. Sec 194C - Engineering, Accounting - 10% Tds
2. Sec 194J - others, unskilled labour - 1% Tds
3...
4...
Thanks in advance.
30 April 2014
reverse
others are unskilled (194C)
engineers etc 194J 10%
others are unskilled (194C)
engineers etc 194J 10%
30 April 2014
Ok Thanks Mr. Nikhil Noted.
Nikhil, I noticed from website is below.
194J - Professional Charges, amount limit Rs.30000/- Per Annuam, TDS rate for Individual or HUF is 10%.
My Query : If the amount exceeds more than 30K then what is the TDS percentage? why they given limit for the same.
Nikhil, I noticed from website is below.
194J - Professional Charges, amount limit Rs.30000/- Per Annuam, TDS rate for Individual or HUF is 10%.
My Query : If the amount exceeds more than 30K then what is the TDS percentage? why they given limit for the same.
30 April 2014
Hi Dhanashekhar,
If professional charges are upto Rs.30,000/- p.a., then there will be TDS.
TDS is to be deducted only professional charges exceeds Rs.30,000/- p.a.
Regards,
Devanand
If professional charges are upto Rs.30,000/- p.a., then there will be TDS.
TDS is to be deducted only professional charges exceeds Rs.30,000/- p.a.
Regards,
Devanand
30 April 2014
Understood Mr. Devanand and thank you soo much for your patience in responding to my queries.
Once again thanks to you and Mr.Nikhil.
Once again thanks to you and Mr.Nikhil.
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