Taxation And Hr
Consultant & G.m.
Sr.accounts Executive
Personnel Department
V Hariharasubramanian
Ir & Hr Issues
Shahid Ali Khan Ayubi
Commerece Student
+8 Others

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Hi Friends,
I have recently joined as a consultant. they are treating me as a employee
when it comes to facilities they are saying that is not applicable.
can any one suggest me what is the difference between employee and consultants

From United States, Fremont
Except 10% TDS no statutory implications on consultants. Consultants requirement will be timebound, no permanancy, they will not be on company rolls. The rules and regulations of the company are not applicable to the consultants. Even the working hours & days will be as per the agreement.
Regards - kamesh

From India, Hyderabad
Dear, Please clear your point. R u regular employee ? or externally providing consultation ?
From India, Pune
Dear ,
in my opnion Employee is a person who perform his/her duties according to rules n regulations of company on permenant base and the company allows some benefits to the employee, on the other hand consultant is appointed for a specific project or to solve any problem consultancy is not a full time job so the consultant is not eligible for such benefits

From Pakistan
It appears from the quiry raised by him that, The co. has appointed him as regular employee but instead
of giving appointment letter, Co. has made agreement with him as Professional for rendering his Services.
Neither Co gave proper information nor he gone in detail at the time of appointment.
He might not aware the difference between Professional/Consultant and Employee. The understanding
and Paper work differ.
Now a days such arrangement is taking at many places to avoid the Statutory liabilities, compliance, and
legal headec.
Pramod Thakar

From India, Pune
Going by your query, it appears YOU R A consultant NOT AN EMPLOYEE. Just on some pretext one can't claim to be an employee. What are the facilities, concessions etc the Consultant could enjoy is the matter of your Terms & Conditions of apptt. It should clearly spell out. For e.g. you may be entitled for much more than an employee would be such as car, boarding, lodging, unspecified time schedule, absence of probation period etc. But clearly you may not be entitled for some, such as PF, gratuity, ESI, bonus etc. A consultant's remuneration could be either a lump sum for the entire assignment or for a tenure payable monthly. Of course TDS @ 10% if exceeds the thrush hold limit. You will be governed by "Contract Act" rather than Labour Laws. Better consult your apptt.order for more clarity.

From India, Bangalore
Dear all
i have deducted Rs.12360/- as TDS from salary for the month of dec-11.
due to some reasons i didn't pay TDS till 16.02.2012.
Pls guide me how much interest i should pay along with TDS Rs.12360/-. to calculate interest
2. how much % of interest i should pay.

From United States
TDS has to be remitted to Govt. within the 7 Days of following month. Failing which, for the delay in remittance, as per Section 201(1A)(ii) or 206(7) of the Act, Interest is payable at one and one-half per cent (1 1/2% p.m.) for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.
Interest is to be calculated from the date on which the tax is actually deducted to the date on which tax is actually paid. So,
From: Dec.2011 - 1 month
Jan. 2012 -- 1 month
Feb.12 -- 1 month
Rs.12,360 x 1.5% x 3 = Rs.556/=
(Also read the link attached)

From India, Bangalore

Attached Files
File Type: doc INTEREST RATE ON LATE DEPOSIT OF TDS.doc (24.0 KB, 1096 views)

A person who is working for full day and receives wages for the work is an emploiyee whereas a consultant is employed for a retainer fees by an employer for advising the employer on matters of reference. But a clear reply can be given only after seeing the full letter of appointment terms and conditions.
V Hariharasubramanian

From India, Madras
Dear Ramesh,
Pl. consider the following accounting effects with your books of accounts and method of accounting.
If Salary for the month of December is recorded in the books i.e. payable on 31.12.2011, in that case TDS is also on the same date. In such case TDS liability is payable to Govt. is due by 7th January 2012. Hence interest payable on your TDS liability if you pay before 29.02.2012 would be 3% [1.5+1.5] i.e. 371/-
If Salary for the month of December is recorded in the books i.e. payable on or in the month of January 2012, in this case TDS liability payable to Govt. is due by 7th February 2012. Hence interest payable on your TDS liability if you pay before 29.02.2012 would be 1.5% i.e. Rs. 185/-
Normally Salary provided on the last day of the month on Mercantile accounting system, hence in your case 3% interest would be applicable.
Pramod Thakar

From India, Pune

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