Deduction of TDS

[Pradeep Jain]

Sir,

Our one employee got retirement at the age of 58 years. Due to need  of  work  we have hired him and issued a contract letter for one year. According to that he will report to plant every day. We are paying monthly consultancy fees on the basis of days  present. He is punching card for attendance .

Do we need deduct TDS under head 194 J or 192 .

Pradeep Jain

[Varghese PA]

Hi, I think you need to deduct tax u/s 194J only and also if the payment is likely to exceed the limit prescribed

[soujanya vemula]

Hi, I think you must deduct TDS under Head 194J or 194C because you issued a contact letter.......

[piyush khivasara]

Hello Pradeep bhai,

As per me the contract should be reviewed for same. As per definition of salary the term " contract to services" is different as against "contract for service". Also note that since the person is on our muster roll and the payment is directly related to same also other related acts should be considered like Proff. Tax and Provident Fund.

[vikram singh]

Pradeep ji,

[vikram singh]

Pradeep ji,

             as per your query you appoint as a consultant and you pay for consultancy or professional fees So it comes u/s 194J and deduct TDS if it is above 30,000/- at the rate of rate 10 percent basis.