Tds on contractual employee

This query is : Open

nikhil (Querist)
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04 February 2013 If any corporation appoints anybody for a particular no of years on contractual basis which says monthly compensation and gives a designation to the employee, but the employee do not get salary slip and is not entitle to participate in PF then in such a case the tds deductible for payments to such person shall be under section 192 or 194J. What shall be the standing of the PF if the Employer is covered under PF act can such contractual employee refused for PF deduction and is the employeer discharged from his liablity if the employee refuse

CA Prashant Gupta

CA Prashant Gupta (Expert)
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04 February 2013 it depends on contract. if it shows that person as consultant then it is 194J. but if it treat person as employee then it is 192.
PF doesn't effect that. if a senior employee cross the minimum PF limit then there is no necessity to deduct PF.
so only PF is not the deciding factor for this.

nikhil

nikhil (Querist)
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04 February 2013 Thanks For the Reply. But how is PF not deductible and what is the limits. As the Company is already covered under PF act??

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