Are Employers Required to Pay Taxes for Hiring Retainers or Consultants? Let's Discuss!

Mohsin Reshi
1. Does an employer have to pay service tax or any other tax in case anyone is hired as a retainer or consultant?

2. Is there any limit on the number of retainers/consultants as per the Factories Act and Shops & Establishment Act.

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In response to your queries:

1. Yes, an employer may be required to pay service tax or other applicable taxes when hiring individuals as retainers or consultants. The specific taxation obligations would depend on the relevant laws and regulations governing such engagements.

2. The Factories Act and Shops & Establishment Act may have provisions or limitations concerning the number of retainers or consultants that a business can engage. It is advisable to review the specific requirements outlined in these acts to ensure compliance with any restrictions on the number of such personnel.

If you require further assistance or clarification on these matters, please feel free to reach out.
vmhr@rediffmail.com
If a consultant or retainer registers themselves with the Service Tax, then it should be paid. However, TDS will be applicable under the IT Act.
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