DAMA RB (1 Points)
09 May 2022I am not contributing PF and Gratuity for my employment salary. How I am considering to that company as permanent or consultant (contract) employee?
rd sharma
(partner)
(118 Points)
Replied 10 May 2022
Please note the following points:-
1. PF is applicable upto 25k per month salary, if you are drawing more than that you are not eligible for epf contribution.
2. Gratuity is applicable if an employee completes his five year of continuous service in a company then he is entitled to gratuity and only when he resigns from the company after completion of five years of continuous service.
3. In case of a contract/consultant employee, tds @ 10% iis deducted under section 194J from his monthly payout and in case of a permanent employee, he is taxed under section 192 of the Income tax act.
4.In case of permanent employee some notice period is given, but in case of contract employee, his services are terminated after completion of contract period.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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