We are a PVT ltd company and are making payment to few contractors only few times during the year. All these contractors are individuals and are close relatives of the company.
Can we show these contractor as temporary employees of the company so that there is no TDS issue if payment is above 75k ?
Is there any rule for showing someone as employee of the company ? Are we supposed to pay an employee consistently or it can vary ? Is it okay if pay then 20,000 in first month, 10,000 2nd month, 0 payment 3rd month , 15000 5th month and so on till end of financial year. can they be still considered as employee and not contractor ?
CAclubindia
