Saswatabanerjee
Partner - Risk Management
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
+1 Other

Thread Started by #db bose

Dear All Kindly share the current Minimum wages For Data entry operators in maharashtra state. thanks & regards
18th July 2015 From India, Pune
Thanks a lot for your reply.
I have calculated minimum wages for DEO (Shop & Shops & Commercial Establishments) for mumbai which comes under Zone-I
have I rightly calculated minimum wages for DEO?
Please guide me.
A Pvt company has asked our company to quote DEO rates which should be as per minimum wages act 1948 and others acts with all taxes.
The excel sheet is enclosed the details.
Kindly request you to help me out.
Thanks in advance
16th August 2015 From India, Pune

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Dear Db Bose,
It seems to me that you need to make your concepts clear on as to what is wages and its components - statutory / non statutory. Its' earning part, deduction part. How it is different than company cost.
Also you need to answer yourself on:
1. How service tax is applicable on employment or on wages?
2. How TDS is applicable when the wages per annum is less than one lac?
3. What and how cess and duty applicable on employment or on wages?
However, to facilitate you to conclude yourself, please find attached herewith wage structure with cost to company. You are requested to kindly go through it and clear your concepts on it.
18th August 2015 From India, Mumbai

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Your working is correct.
Except that you do not have esic. Esic is compulsory for all your staff, so better factor it in.
Also I see no profit margin in your working. Which is strange.
Korgaonkar, when the contract raises his bill, he needs to add service tax in the whole bill and pay that to the government. So he needs to add that too. Further, the amount paid to him will be less TDS at 10%. If he does not add that, his cash flow will be completely wrecked. He will actually get inly 90% of his bill. So the working is right.
19th August 2015 From India, Mumbai
Dear Saswata ji,
Thanks for your contribution.
Inadvertently I missed out the above statement of queriest while reading and responded.
In that case, the contracting company can add service tax at 14% to his billing provided the company is registered under Service Tax. TDS will be deducted by the paying party at applicable rate. How the queriest add Income Tax @ 10% in the bill? How the queriest add P.Tax @ 200 in his bill?
You have rightly asked the queriest where is the profit margin. He has to add it in the head either service charges or contract fee.
You need to re-look to your above statement.
19th August 2015 From India, Mumbai
Since TDS will be deducted, he is not getting that money.
Even if he gets a refund, that will come after 3 years. So in effect we count TDS as a cost (or at least a cash outflow)
That is why TDS amount is added as cost to the bill.
I think you should look at my statement from and auditors report perspective..... Subject to my comments and qualifications that follow, the books of accounts reflect the true and fair view of the company. Similarly, subject to my qualification of errors I listed, the working is correct :-)

20th August 2015 From India, Mumbai
Dear Db Bose,
Please let me know if you get TDS reimbursement from your client. I will also approach such clients and get business.
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20th August 2015 From India, Mumbai
Sir,
It's basically a question of negotiation
When you talk costs / fees, you out in a profit margin.
At that time the client will start to complain, this is high etc. you need to then cry and show that actual amount you are getting is only 90% of billing, and so where is the margin left then, therefore either add 10% to cost or give me 10% more as Margin.
The clients for whom we work on cost plus basis, we add TDS to cost or increase agreed margin by that much.

21st August 2015 From India, Mumbai
Dear Saswata ji,
With due respect to you Sir, I would ask you then why 10 percent? It should be 30. My tax liability is 30 percent.
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21st August 2015 From India, Mumbai
Your tax liability is 30% of the 10% 'profit margin, or even less. That is an acceptable part of doing business. And I pay tax on actual profit. Effective tax rate on contract would be not more than 1-2 %
But now that you say, TDS on labour contract is only 2% not 10%
In our contracts is 10% because we come under professional fees and now to labour contract

22nd August 2015 From India, Mumbai
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