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?
From India, Kolkata
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From India, Kolkata
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Understanding Section 194C and TDS Deductions
Any individual working under section 194C falls under a contract where 1% TDS is deducted. Since they are not considered employees, they are not eligible to receive a salary certificate or payslip. Only the work contract can be provided.
From India, Ahmadabad
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747Any individual working under section 194C falls under a contract where 1% TDS is deducted. Since they are not considered employees, they are not eligible to receive a salary certificate or payslip. Only the work contract can be provided.
From India, Ahmadabad
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Thank you for your response. I would like to inquire about the nature of employment as a contractor/sub-contractor (194C) where the employer is deducting 1% tax from the monthly salary. Can the employee request a monthly pay slip? Or is a TDS certificate sufficient for the same? If the individual is entitled to a pay slip, could you provide information on the format?
Please advise.
Thanks.
From India, Kolkata
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Please advise.
Thanks.
From India, Kolkata
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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 maximize the post-tax money into the hands of the person, he/she has been engaged under 194(c) and 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
From India, Bangalore
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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
From India, Bangalore
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Mr. Raju Bhatnagar has clearly clarified the status of the person who is seeking a payslip. The person has no business to claim a payslip since he is not on the muster roll of the employer.
Regards,
SPKR
From India, Bangalore
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Regards,
SPKR
From India, Bangalore
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TDS Deduction for Employees and Contractors
TDS of an employee can be deducted under section 192B. TDS under section 194C can be deducted at 2% in the case of a contractor or 1% in the case of a sub-contractor. In this scenario, no salary slip can be provided; only a TDS certificate can be given.
Please let me know if you need further clarification or assistance.
From India, Kharar
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TDS of an employee can be deducted under section 192B. TDS under section 194C can be deducted at 2% in the case of a contractor or 1% in the case of a sub-contractor. In this scenario, no salary slip can be provided; only a TDS certificate can be given.
Please let me know if you need further clarification or assistance.
From India, Kharar
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SALARY CERTIFICATE- MINISTRY OF FINANCE's Notification on formats.docx
Employee-engage ment.prn_190.pd f