Dear Friends,
** THIS MAIL IS ALREADY POSTED TO CHR BY ME AND THIS ISSUE IS BEEN PUT UNDER LEGAL ISSUE HEAD AND I JUST DON'T WANT TO PUT THIS ISSUE UNDER LEGAL AND MAKE IT'S SCOPE LIMITED I WOULD LIKE TO MAKE WIDER AND WOULD LIKE TO KNOW ABOUT PAY ROLL SYSTEM TOO IN CONSULTING COMPANIES, HENCE I'M ONCE AGAIN MALING TO ALL OF YOU PEOPLE TO GO THROUGH IT AND GIVE YOUR VALUABLE INFO ON THIS ISSUE **
One of my my known organization is into training, development and placements. It pays salary to the all of their employees as "consultation fees" and shows into their accounts as Consulting Charges and deducts "professional tax" 5.2 per centage at source itself.
This organization is registered as consulting pvt ltd. and having 3 Divisions with 3 different names as separate legal entity and registered as Training Company, Development Company and MAIN ONE as Consulting Company Pvt Ltd, but all of these 3 division employees getting salary as "CONSULTATION FEES" from the main Consulting Company pvt ltd. And Management says on the face of all employees we the management not bound to pay any kind of allowences/eminities/facilities/perks(like HRA, DA, EA, CCA, PF, GPF, Insurance etc.,) since all you been appointed as consultants to this Org.
My question is, can any company can pay to ALL OF HIS EMPLOYEES AS CONSULTATION FEE instead of salary by mear registering company as CONSULTING PVT LTD? is it valid practice? if not what kind of allowences/eminities/facilities/perks(like HRA, DA, EA, CCA, PF, GPF, Insurance etc.,) will entitle by these employees.
This organization's strength is around 40-50 members(employees, management etc)
and what laws applicable to these kinds of organizations.
could you brief me out what laws making them to do so, and which law can prevent them to do so?
Expecting your early reply.
thanking you,
** THIS MAIL IS ALREADY POSTED TO CHR BY ME AND THIS ISSUE IS BEEN PUT UNDER LEGAL ISSUE HEAD AND I JUST DON'T WANT TO PUT THIS ISSUE UNDER LEGAL AND MAKE IT'S SCOPE LIMITED I WOULD LIKE TO MAKE WIDER AND WOULD LIKE TO KNOW ABOUT PAY ROLL SYSTEM TOO IN CONSULTING COMPANIES, HENCE I'M ONCE AGAIN MALING TO ALL OF YOU PEOPLE TO GO THROUGH IT AND GIVE YOUR VALUABLE INFO ON THIS ISSUE **
One of my my known organization is into training, development and placements. It pays salary to the all of their employees as "consultation fees" and shows into their accounts as Consulting Charges and deducts "professional tax" 5.2 per centage at source itself.
This organization is registered as consulting pvt ltd. and having 3 Divisions with 3 different names as separate legal entity and registered as Training Company, Development Company and MAIN ONE as Consulting Company Pvt Ltd, but all of these 3 division employees getting salary as "CONSULTATION FEES" from the main Consulting Company pvt ltd. And Management says on the face of all employees we the management not bound to pay any kind of allowences/eminities/facilities/perks(like HRA, DA, EA, CCA, PF, GPF, Insurance etc.,) since all you been appointed as consultants to this Org.
My question is, can any company can pay to ALL OF HIS EMPLOYEES AS CONSULTATION FEE instead of salary by mear registering company as CONSULTING PVT LTD? is it valid practice? if not what kind of allowences/eminities/facilities/perks(like HRA, DA, EA, CCA, PF, GPF, Insurance etc.,) will entitle by these employees.
This organization's strength is around 40-50 members(employees, management etc)
and what laws applicable to these kinds of organizations.
could you brief me out what laws making them to do so, and which law can prevent them to do so?
Expecting your early reply.
thanking you,