| Tds applicability for temp staff with pf/esic benefits hi friends,
we have around 400 no's of workmen in SALES/TECHNICAL/LOGISTICS function working with our organisation on CONTRACT BASIS, which is renewed every year, they are all entitled to PF/ESIC/PROFESSIONAL TAX/GRATUITY benefits as applicable for a normal full time staff, TDS is also deducted from their salary as per INCOME TAX NORMS , UNDER SALARY LIMITS fr income above 1.6 lacs p.a, and as per rates applicable, duly deposited every quarter within deadline
however as per IT DEPT notice issued, we have been asked to clarify why we are not deducting TDS from their salary treating them as CONTRACT EMPLOYEES ONLY and we should be deducting TDS ONLY as per CONTRACT RATE applicable
can anyone give me links to any such earlier INCOME TAX CASE or help me with suggestions to draft reply to IT DEPT on the same
thanks | 
