Hi All,
Please study the following case and let us know your opinion :
suppose a person X is based in Assam and is working for pvt ltd company Y from his home in Assam. Closest office of the private limited company Y is based in Delhi. Company Y is paying that person 16,000 Rs per month.
Is it legal or compliant if company Y show person X as full time employee of the company on payroll ? Person X has no other income source.
Or company Y has to show that person X as contractor and hence TDS will be applicable ?
- Divya