Can Employee Working Under 194C Claim A Salary Certificate?

If an employee is working in 194c and deduction tds (1%). Is he claim any pay slip or salary certificate. if yes, what are the formats?

Any person working under sec. 194c comes under contract wherein 1% TDS is deducted being individual, they cannot be treated as employee so salary certificate or payslip cannot be given, only the work contract can be given.

Dear E. Shankar,
Thanks for your response. Actually, I want to know, Nature of employment is contractor/sub-contractor (194c) and employer deducting tax 1% of his/her monthly salary. Is the employee claim any pay slip monthly basis? or TDS certificate is sufficient for the same. If the person is eligible for pay slip, what will be the format?
Please let me know.
Tnanks.

Dear Parag,

I think your confusion stems from the fact that you are using the term "employment" whereas you should be using the term "engagement". Further, I am guessing, that in order to maximise the post tax money into the hands of the person, he / she has been engaged under 194(c) as has been shown as a Contractor, even though, possibly, he / she is an employee in all other respects.

Assuming that my guesses are correct, you need to bear in mind that the person you have engaged is a Contractor and hence cannot be an employee. If a person is not an employee, there can be no case for seeking any salary slip / pay slip.

If I were to draw a parallel, for purposes of an example. Let us assume that you have engaged a person as a media planner to handle your advertisements and media coverage. It is likely that this contract would be open ended i.e., in perpetuity till revoked. Also this person would be paid a certain amount on a monthly basis for services rendered. However, this person cannot claim or ask for a salary slip / pay slip. The person is either an employee (in which case 194(c) would not apply and TDS at normal rates for an employee would apply) or the person is a contractor (in which case 194 (c) would apply). You cannot have a situation where a person is a contractor and at the same time seek a monthly pay slip like an employee.

Regards

Raju Bhatnagar

[QUOTE=rajubhatnagar;2100865]Dear Parag,

I think your confusion stems from the fact that you are using the term "employment" whereas you should be using the term "engagement". Further, I am guessing, that in order to maximise the post tax money into the hands of the person, he / she has been engaged under 194(c) as has been shown as a Contractor, even though, possibly, he / she is an employee in all other respects.

Assuming that my guesses are correct, you need to bear in mind that the person you have engaged is a Contractor and hence cannot be an employee. If a person is not an employee, there can be no case for seeking any salary slip / pay slip.

If I were to draw a parallel, for purposes of an example. Let us assume that you have engaged a person as a media planner to handle your advertisements and media coverage. It is likely that this contract would be open ended i.e., in perpetuity till revoked. Also this person would be paid a certain amount on a monthly basis for services rendered. However, this person cannot claim or ask for a salary slip / pay slip. The person is either an employee (in which case 194(c) would not apply and TDS at normal rates for an employee would apply) or the person is a contractor (in which case 194 (c) would apply). You cannot have a situation where a person is a contractor and at the same time seek a monthly pay slip like an employee.

Regards

Raju Bhatnagar[/QUOT

Mr.Raju Bhatnagar has clearly clarified the status of the person who is seeking pay slip.The person has no business to claim pay slip, since he is not in the muster roll of the employer.

SPKR

dear sir/madam,
please provide which is must knowldge for every HR provide me as soon as possible.

TDS of an employee can be deducted u/s 192B.
TDS u/s 194C can be deducted 2% in case a contractor or 1% in case a sub-contractor. In this case no salary slip can be given. Only TDS certificate can be given.