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Office Boy Salary

Saurabh Gupta (Service) (53 Points)

12 November 2008

I am working in a pvt ltd company, we are paying salary to few office boys approx 4-5000 P.M. each but we are not deducting TDS on that and they are not on our roll so PF, ESI etc are also not deducted.

Please advise, I think it's not the right way

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4 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 12 November 2008

TDS will not be applicable as the salary is below taxable limit. But PF ESIC etc will be applicable. It is an obvious mistake and I am surprised what is there to ask?

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Bala (CFO, Cogzidel) (59 Points)
Replied 12 November 2008

Hello Mr. Saurabh,

If the person is appointed as a contractual staff, tax has to be deducted at source under section 194C.

If appointed as an employee under pay-roll, then tax has to be deducted at source under section 192. But, in your case, this will not be applicable since the amount paid is well within the taxable limit.

But pls note that, in both the cases above, PF and ESI are applicable. If the PF/ESI officer finds that the deductions haven't been done, then they would charge the employer to remit the same with penalty. Hence, it is advisable to start deducting PF and ESI for this employee ( I assume that you are already registered for PF/ESI).

Regards

Bala

www.cogzidel.in

Saurabh Gupta (Service) (53 Points)
Replied 14 November 2008

Thanks a lot

Originally posted by :Bala

Hello Mr. Saurabh,
If the person is appointed as a contractual staff, tax has to be deducted at source under section 194C.
If appointed as an employee under pay-roll, then tax has to be deducted at source under section 192. But, in your case, this will not be applicable since the amount paid is well within the taxable limit.
But pls note that, in both the cases above, PF and ESI are applicable. If the PF/ESI officer finds that the deductions haven't been done, then they would charge the employer to remit the same with penalty. Hence, it is advisable to start deducting PF and ESI for this employee ( I assume that you are already registered for PF/ESI).
Regards
Bala
www.cogzidel.in

Saurabh Gupta (Service) (53 Points)
Replied 09 December 2008

I am working in a media company. Can you please confirm the TDS rate on stringers salary ? It will come in professional category or contract category.