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Tds consultant fees...

Learner (ADMIN) (107 Points)

24 October 2012

I recently took up a job as Consultant(Admin).I understand TDS u/s 194j is to be deducted. However,I also feel that the rule says "........... if no employee employer relation exists".But though I am a consultant I do is...work in their campus from 10 am to 5..

and Sn 192 also says Fees in liew of Salary...

Can any one guide me on this.

The appointment order says "consultant(Admin). In that case sn 194J shall apply rt?..

If I change "consultant(Admin). to Administrative officer.....Then sn 192...Rt???

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4 Replies

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 24 October 2012

as you are giving services as a consulltant, i hope you are raising bills for your services hence no chance of treating you as a employee , as a consultant time is not a big factor but you have to be careful that you should not enter timings in "in-out register"

by this way sec 194j would be applicable.

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manish kumar (C.A) (99 Points)
Replied 27 October 2012

Originally posted by : Sreenivas

Dear Sreenivas

Your are providing service to client as being indepant person and your appointments does not mention basic, HRA and other allowance, which are provided to to employee, so you can not be treated as employee of the company. Weather you give full time to company you can not be a employee. the matter is decieded on term and condition of your appointment letter.

Once you are not employee than your tax laibilities comes under 194J , professional fee etc

Learner (ADMIN) (107 Points)
Replied 31 October 2012

Thanks Gentlemen.I shall deduct tds undere194(c)

Lokesh Rao (sr associate ) (45 Points)
Replied 31 October 2012

Hi,

@ srinivas

Employer-employee contract of service

Permanent employees have a contract of service with their employer. By definition, if a worker has a contract of service with an organisation, they are an employee.

The key rights and responsibilities of employee status under a contract of service are:

The worker is controlled by their employer – they must perform the tasks they are instructed to by a line manager according to their job descripttion
The worker is expected to work at a specific place during specific hours on specific days (even flexi-time has core hours)
The worker must present themselves for work and cannot send someone else as a substitute

So even if they have not included u in Payroll list there exist employer employee relationship as per above conditions hence TDS may be deducted u/S 192
I think employer is also safe if they are deducting TDS u/s 192 i.e Income tax payable by for that F.Y by you as individual considering basic excemption limit.
And Last if they think PF, gratuity, other benefits would be applicable to employer u can give delaration not to deduct as per law (i think ur basic is more than 6500/-pm)