Tds on internship/contract employees.

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Querist : Anonymous

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Querist : Anonymous (Querist)
11 June 2014 Sir,

We are hired in MoPNG on contract basis initially for the period of 6 month and paying honorarium of 30k per month. At what rate they should deduct TDS and under which section.
Please also provide some reference and basis for your opinion.

11 June 2014 If you are hired as contract employees TDS on salary provisions would be applicable. But if you are hired for providing any professional & technical services, TDS u/s 194J would be applicable

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Querist : Anonymous

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Querist : Anonymous (Querist)
12 June 2014 In my appointment letter it was written that appointment as Intern for period of 6 month. nothing else....
then???
However they are deducting @ 10% under 194J, In my view which is not correct at all.
Please give me some basis so that I can argue with them.


13 June 2014 In my opinion if it is written as intern, they cannot deduct TDS as per on Salary as no employee employee relationship exists, so they are deducting as per 194J considering you provider of Professional Or Technical services.



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