Accounts & Finance
Accounts & Administration, Tax
Sharad Shah
Food And Agro Projects
Hr Consultant
+11 Others

Thread Started by #spsr

Should we deduct TDS for a person who is on retainer ship agreement with our organization ? if Yes, how to deduct ? please guide me
18th December 2010 From India, Hyderabad
Yes you need to deduct tax at source for a person who is on a retainership agreement.
Tax has to be deducted @10.3% of the gross amount of the bill.
Hope this would help you.
Kind Regards,
Avika Kapoor
Assistant General Manager - Business Development

18th December 2010 From India, New Delhi
I am not very sure about the professional tax. It varies from state to state. Kindly check with the provisions applicable to your state. Thanks & Regards, Avika
18th December 2010 From India, New Delhi

Will you pls elaborate the meaning of person on retainer ship agreement.
See If the person is a professional then TDS will be @ 10%
if other means if its a contract then TDS may be diff. so let me know abt it.

Atul Somani

18th December 2010 From India, Pune
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
18th December 2010 From India, Mumbai
Dear Avika, I just want to correct you, as the TDS % on professionals is 10% not 10.3% . Please do not mind. V.K.Gupta
19th December 2010 From India, Delhi
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.
19th December 2010 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.
Kamal Prasoon Sinha
19th December 2010 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.
Kamal Prasoon Sinha
19th December 2010 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

Issue of TDS certificate: TDS certificate Form 16A) with PAN number of
the deductee (Retainer) has to be issued every
19th December 2010 From India, Bangalore
Dear Mr
The thing is you need to deduct TDS on retainer ship bill @ 10% in the respective bill he claims provided the total retainer ship fee does exceeds Rs.20K during the financial year. Otherwise not mandatory. Further professional tax doesn't attract in this case. If u subjected to deduction of TDS u may have to remit to IT on a quarterly basis through form 26 A on Q1, Q2, Q3 & Q4 Challans. Finally issue TDS Certificate of form 16A see rule 31(1)(b) to the concerned retainer on an annual financial year basis showing all payments of retainer ship along with tax deducted at source to enable him to file his annual return for claiming tax adjustment / refund as the case may be. Hope the above shall suffice your requirements.
20th December 2010 From India, Madras
Dear Mr. Devarajan.N
For the current financial year (2010-2011) TDS is applicable if total paid amount exceeds Rs 30,000 and not 20,000 as mentioned by you.
My humble request is to clarify your input on the subject.
Kamal Prasoon Sinha
20th December 2010 From India, Pune
Dear ....,
You must deduct the tax @ 10% on gross amount of bill & if your organisation is covered under ESI & PF then you should also deduct the ESIC, PF amount. This will help you in your future audit of ESI & PF, else you will be liable for audited liability.
Jagtap Dinesh
Sr. Manager Budget, Finance & Accounts
Induction Group
Nashik - Maharashtra
+91 88888 44614
20th December 2010 From India, Pune
Sub: TDS on retainership fee
TDS on retainership fee,Retainersip fee agreement is nature of consultancy,TDS will attract @10% u/s 194J so that you have to deduct 10% tax on gross bill.
With regards
manoj kumar singh
20th December 2010 From India, Gonda
Unless you clarify what is your arrangement with your so called "Retainer' it may not be appropriate to give you
the proper advice meaning, an employee, or a consultant/professional like CA, Lawyer, Architect etc., or a contractor. Pl.clarify
20th December 2010 From India, Bangalore
Dear Mr. Dinesh Jagtap,
For retainership/professionals deduction of PF & ESI is dependent upon the employment contract. If it is mentioned in the employment contract that employer will deduct/contribute PF & ESI then only its applicable otherwise not.
PF & ESI deduction is not applicable in all such cases.Only TDS deduction under section 194J is applicable in all cases.
Kamal Prasoon Sinha
21st December 2010 From India, Pune
Dear Friends;
I retired on 3rd September 2010. From 1st October 2010, my company appointed me as a consultant with a consolidated salary of Rs. 50,000/- per month (No other perks). Now every month I am paid Rs.45,000/- after deducting 10% TDS. I would like to know whether TDS is applicable to me or not? If yes, whether I need to collect TDS certificate after every three months or at the end of the financial year?
Can anyone guide me?
His Blessings;
Sharad (Ahmedabad)
22nd December 2010 From India, Ahmadabad
Dear Mr.Sharad Shah,
TDS is applicable in your case under section 194J. The company will provide you TDS certificate (Form 16A) at the end of the financial year.
Kamal Prasoon Sinha
23rd December 2010 From India, Pune
If any person retire from the organization and appointed as Retainer, In that case what will be the Rate of TDS.
23rd December 2010 From India, Calcutta
Retainer is between employee and professional.
The work is directed by principal, and attendance to work is also set by principal., but manner in which work is to be done is more flexible than in employee relationship..
in professional relationship, how to perform work is totally left to professional.
23rd December 2010 From India, Mumbai
if the person is hired for 25 days on retainership basis on Rs.11096 total salary to be paid to him, then what deductions should be in case of TDS?
22nd May 2019 From India, Delhi
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