Urgent ---tds

This query is : Resolved

CA Deven (Querist)
Follow

11 February 2014 Dear All,

Please note that we (Company) have appointed one person as a care taker of our new guest house..He is not on a payroll and we are paying him monthly Rs. 16,000/-.. No contract also signed with him...

Please tell me TDS will be applicable under which section ??

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 February 2014 yes TDS is applicable on such payments. written contract is not required.

CA Deven

CA Deven (Querist)
Follow

11 February 2014 Nikhil,

We are paying him salary now of January month after deducting TDS ..so we are in default know of non payment of TDS ..and under Service Tax any reverse charge is there ??

Upgrade to CAclubindia Pro. Subscribe Now!

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 February 2014 rcm should not apply as this is not labour supply contract...

CA Deven

CA Deven (Querist)
Follow

11 February 2014 last question,

We have not paid him salary for the month of jan will pay him today so will deduct 1% and pay now ..

So our liability to pay TDS will arise in this month right ?