Should we deduct TDS for a person who is on retainer ship agreement with our organization ? if Yes, how to deduct ? please guide me
From India, Hyderabad
From India, Hyderabad
117
Dear.... As i concern, You have to deduct 10% TDS on his monthly bill & you don’t need to deduct professional tax. Regards, Rajendra V
From India, Mumbai
From India, Mumbai
The TDS of 10% is deducted only if it is purely retainership. In case of employer-employee relationship exist (e.g retired employee working in the same organisation on contractual basis) then full tax as applicable to salary need to be deducted.
Regars
Gopal
From India, Madras
Regars
Gopal
From India, Madras
Any person working as a retainer (under retainership agreement) will fall under the category of Professionals.
Applicable TDS will be @ 10% only on the total amount paid to him/her.
Total payment (in that particular financial year) must exceed Rs 30,000 for TDS deduction.
PAN is compulsory to all deductors otherwise TDS shall be deducted @ 20% W.E.F. 01.04.2010
Professional tax will not be applicable.
Regards,
Kamal Prasoon Sinha
19-12-2010
Pune
From India, Pune
Applicable TDS will be @ 10% only on the total amount paid to him/her.
Total payment (in that particular financial year) must exceed Rs 30,000 for TDS deduction.
PAN is compulsory to all deductors otherwise TDS shall be deducted @ 20% W.E.F. 01.04.2010
Professional tax will not be applicable.
Regards,
Kamal Prasoon Sinha
19-12-2010
Pune
From India, Pune
Dear Avika Kapoor,
In the instant case applicable TDS will be @ 10% only and not 10.30% as mentioned by you.
You should know that no Surcharge and Education cess is applicale from 19th August 2009 on TDS deductions for Professionals.
Please give a clarification to remove the unnecessary doubts of the readers.
Regards,
Kamal Prasoon Sinha
19-12-2010
Pune
From India, Pune
In the instant case applicable TDS will be @ 10% only and not 10.30% as mentioned by you.
You should know that no Surcharge and Education cess is applicale from 19th August 2009 on TDS deductions for Professionals.
Please give a clarification to remove the unnecessary doubts of the readers.
Regards,
Kamal Prasoon Sinha
19-12-2010
Pune
From India, Pune
Yes Tax has to be deducted at source under section 194J
I furnish below key points relating to this provision
Rate of Tax : Tax to be deducted @ 10%. (No need to deduct education
cess of 3% on tax amount wiith effect from 01-10-2010). If
PAN number of the retainer is not obtained, Tax to be
deducted @ 20%.
Time of Deduction: Deduction has to be made at the time of crediting
the retainers' account in the books or at the time of
payment, which ever is less.
Remittance of Tax: The amount deducted has to be deposited to central
government account through the designated bank.
Remittance has to be made by using E-payment
option (Direct tax payment).
Due date for remittance: On or before 7th of immediate subsequent
month. For eg: If deduction is made on let us say
12th November, 2010 remittance has to made on or
before 7th of December 2010.
Interest for delayed remittance: If TDS is not remitted with in due
date, Interest @ 1.50% per month has to be paid.
Part of the month is to be treated as one full month.
Filing of ETDS return: Quarterly TDS return needs to be filed in Electronic
form in form 26Q. RRR number which is ETDS filing
acknowledgemnet number has to be quoted in tds
certificate.
Issue of TDS certificate: TDS certificate Form 16A) with PAN number of
the deductee (Retainer) has to be issued every
quarter.
From India, Bangalore
I furnish below key points relating to this provision
Rate of Tax : Tax to be deducted @ 10%. (No need to deduct education
cess of 3% on tax amount wiith effect from 01-10-2010). If
PAN number of the retainer is not obtained, Tax to be
deducted @ 20%.
Time of Deduction: Deduction has to be made at the time of crediting
the retainers' account in the books or at the time of
payment, which ever is less.
Remittance of Tax: The amount deducted has to be deposited to central
government account through the designated bank.
Remittance has to be made by using E-payment
option (Direct tax payment).
Due date for remittance: On or before 7th of immediate subsequent
month. For eg: If deduction is made on let us say
12th November, 2010 remittance has to made on or
before 7th of December 2010.
Interest for delayed remittance: If TDS is not remitted with in due
date, Interest @ 1.50% per month has to be paid.
Part of the month is to be treated as one full month.
Filing of ETDS return: Quarterly TDS return needs to be filed in Electronic
form in form 26Q. RRR number which is ETDS filing
acknowledgemnet number has to be quoted in tds
certificate.
Issue of TDS certificate: TDS certificate Form 16A) with PAN number of
the deductee (Retainer) has to be issued every
quarter.
From India, Bangalore
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