Regarding deduction of TDS for technical person working under contractor - Professionals - Taxation - TIK Share
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Regarding deduction of TDS for technical person working under contractor


Dushyanth Kumar N

2015-08-05

Respected sir,

I am a technical person working in govt office on open source contract basis. the salary will be paid to me from the contract holder and he will get the amount (net salary+service charge +service tax) from the govt office .So that what is the TDS Rate to be deducted .

CA Pulkit Sharma

2015-08-05

TDS to be deducted for whom? For you or your employer.

Can you please further explain your position. What I understood is that you are employed by a contractor, who works for government.

TDS on your salary will be deducted by contractor under 92B.

In case of your contractor, TDS will be done at 1% under 194C.

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Dushyanth Kumar N

2015-08-05

sir,

i m  a employee and bill will be submitted to govt office by contract holder and the salary will be paid to me by contract holder. 

*  i m BE graduate working for govt office

*Contract holder will submit the bill as (net salary+service charge +service tax)

to this what is the TDS rate to be deducted ?

* Contract holder will pay me the net salary

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CA Pulkit Sharma

2015-08-06

Contract holder will pay the invoice, governemnt will pay to contract holder after deducting 1% TDS.

Contract holder will pay you salary after deducting TDS if applicable. If your salary crosses the taxable limit TAX will be calculated and paid to you after deducting TDS. TDS on your salary is not at a fixed rate but tax payable devided by number of months.

Suppose you get 30000 salary, your income for 12 months will be 3.6 lakhs. On this if tax liability is 10,000. Your contractor will deduct 10,000/12 from your salary.

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