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Dear All,
I searched the site but couldn't find a topic relevant to what i wanted a clarification on.
I have joined an Organization on contract basis since Sep 2011. My current salary is Rs.11,000/- month + Service tax. Currently when i received my salary my employer has deducted an amount of Rs.1,100/- from my salary. When enquired it was mentioned that it is TDS that has been deducted.
As far as i believe TDS is something which is charged only for employees who have salary above a certain amount (180,000/-pa). Now my ctc is only around 135,000/- then should i be charged with a TDS deduction. Is tds deduction rules different for permanenet employees and contract employees.
Awaiting your valuable responses.
Regards.
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Dear Luckey
As a matter of fact, the organisation will be deducting the TDS and on completion of financial year you will get the TDS Certificate (Form 16A), and with that TDS Certificate you can get the amount duly deducted from you.
Dear Luckey I think you not an employee of that company, if employee means how is the matter of service tax?. employer treated as you are a service provider (professanol) for that they deduct 10%.
ok. but we know about his nature of work otherwise we cannot juge its professional or contract ?
as far as the explanations by luckey in the 1st para.. it seems that he is an contract employee and not a professional service provider ..
Dear All,
I'am working on a contract basis with this company. Thy had promised me a take home salary of Rs.11,000/- + service tax(which will be billed extra). Now they are giving me only Rs. 9,900/-. This is what is bothering me. The HR dept says they will provide me form 16 with which i can get back my TDS deducted amount at the year end. But i feel once a money is gone to the govt. then its almost impossible to get it back.
Please advice how can i avoid this deduction of Rs. 1,100/- as i really need this salary of Rs. 11,000/- which was promised to me. In my earlier work place i used to get Rs. 10,500/- in hand and here now am getting a lesser amount (Rs. 9,900/-). I didnt change the job to work for a lesser salary as i was promised a Salary of Rs. 11,000/- + service tax which will be paid by emlpoyer. They had said i will not have any deductions, but when i have joined they are deducting TDS now.
Please advice folks.
Regards,
Pradeep.
Dear Pradeep,
The company is doing perfectly right.. u would have asked them about your take home salary before joining itself..
They are treating you as a contract employee and not a regular employee .. so as per Income Tax, if the company pays any amount exceeding Rs 75000/- in a year against contract it has to deduct the TDS ..
dear pradeep pls contact you hr and ask them change /cancel the contract take as regular empolyee
Dear Pradeep,
It appears from above discussion that, your company has hired you not as an employee, but as professional consultant and have started deducting applicable TDS rate @ 10% on what ever amount they pay you.
You have nothing to worry, since your income is much lower, after completion of this FY you will be given Form 16A based on that you file your income tax return and claim refund of tax deducted but this will take much longer time, instead ask your employer to stop treating you as comsultant and register your name as an employee in company muster roll or take you as an employee in a labour contractor account (where you will be on muster roll of labour contractor)
hope this will solve your problem.
Regards
Dayanand
Bengalooru
Dear Luckey,
Greetings! What is the nature of your Job? When ever you talk about your Salary you say it along with Service Tax.
Service Tax is applicable only for taxable services, for which you should have Service Tax Registration, your annual turnover should be above 10 L, etc and all that.....
to my understanding your salary cannot be with service tax, where it will be only Rs.1.32 L p.a, however, it needs to be further discussed, hence, tell me the nature of your Job. rest after knowing the answer.
Regards,
Nicholas
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