30 July 2009
Our co pays "referral bonus" to employee who refer other candidates to our co. E.g ABC refers XYZ and XYZ joins co, then ABC will get specified amount as referral bonus. My query - Presently this payment is made out of payroll and TDS is deducted under head of prof fees. Can this amount be routed through payroll and TDS deducted under head salaries ? Which one is correct and why ? Pl revert for opinion