Should we deduct TDS for a person who is on retainer ship agreement with our organization ? if Yes, how to deduct ? please guide me
From India, Hyderabad
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From India, Hyderabad
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Yes, you need to deduct tax at the source for a person who is on a retainership agreement. Tax has to be deducted at 10.3% of the gross amount of the bill. Hope this would help you.
Thanks,
Kind Regards,
Avika Kapoor
Assistant General Manager - Business Development
From India, New Delhi
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118Thanks,
Kind Regards,
Avika Kapoor
Assistant General Manager - Business Development
From India, New Delhi
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I am not very sure about the professional tax. It varies from state to state. Kindly check with the provisions applicable to your state. Thanks & Regards, Avika
From India, New Delhi
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From India, New Delhi
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Hello,
Could you please elaborate on the meaning of a person on a retainer ship agreement? If the person is a professional, then the TDS will be at 10%. However, if it is a contract, the TDS may be different. Please let me know about it.
Atul Somani
From India, Pune
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Could you please elaborate on the meaning of a person on a retainer ship agreement? If the person is a professional, then the TDS will be at 10%. However, if it is a contract, the TDS may be different. Please let me know about it.
Atul Somani
From India, Pune
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Dear.... As i concern, You have to deduct 10% TDS on his monthly bill & you don’t need to deduct professional tax. Regards, Rajendra V
From India, Mumbai
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From India, Mumbai
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Dear Avika, I just want to correct you, as the TDS % on professionals is 10% not 10.3% . Please do not mind. V.K.Gupta
From India, Delhi
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From India, Delhi
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The TDS of 10% is deducted only if it is purely retainership. In case of an employer-employee relationship existing (e.g., a retired employee working in the same organization on a contractual basis), then the full tax, as applicable to salary, needs to be deducted.
Regards,
Gopal
From India, Madras
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Regards,
Gopal
From India, Madras
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Any person working as a retainer (under a retainership agreement) will fall under the category of Professionals. Applicable TDS will be at 10% only on the total amount paid to him/her. Total payment (in that particular financial year) must exceed Rs 30,000 for TDS deduction. PAN is compulsory for all deductors; otherwise, TDS shall be deducted at 20% w.e.f. 01.04.2010. Professional tax will not be applicable.
Regards, Kamal Prasoon Sinha 19-12-2010 Pune
From India, Pune
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Regards, Kamal Prasoon Sinha 19-12-2010 Pune
From India, Pune
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Dear Avika Kapoor,
In the instant case, applicable TDS will be at 10% only and not 10.30% as mentioned by you. You should know that no surcharge and education cess are applicable from 19th August 2009 on TDS deductions for professionals. Please provide clarification to remove the unnecessary doubts of the readers.
Regards,
Kamal Prasoon Sinha
19-12-2010
Pune
From India, Pune
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In the instant case, applicable TDS will be at 10% only and not 10.30% as mentioned by you. You should know that no surcharge and education cess are applicable from 19th August 2009 on TDS deductions for professionals. Please provide clarification to remove the unnecessary doubts of the readers.
Regards,
Kamal Prasoon Sinha
19-12-2010
Pune
From India, Pune
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Yes, tax has to be deducted at the source under section 194J.
I furnish below key points relating to this provision.
Rate of Tax: Tax to be deducted at 10% (No need to deduct education cess of 3% on the tax amount with effect from 01-10-2010). If the PAN number of the retainer is not obtained, tax to be deducted at 20%.
Time of Deduction: Deduction has to be made at the time of crediting the retainer's account in the books or at the time of payment, whichever is less.
Remittance of Tax: The amount deducted has to be deposited to the central government account through the designated bank. Remittance has to be made by using the E-payment option (Direct tax payment).
Due date for remittance: On or before the 7th of the immediate subsequent month. For example, if deduction is made on, let's say, 12th November 2010, remittance has to be made on or before the 7th of December 2010.
Interest for delayed remittance: If TDS is not remitted within the due date, interest at 1.50% per month has to be paid. Part of the month is to be treated as one full month.
Filing of ETDS return: Quarterly TDS return needs to be filed in electronic form in Form 26Q. RRR number, which is the ETDS filing acknowledgment number, has to be quoted in the TDS certificate.
Issue of TDS certificate: TDS certificate (Form 16A) with the PAN number of the deductee (Retainer) has to be issued every quarter.
From India, Bangalore
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I furnish below key points relating to this provision.
Rate of Tax: Tax to be deducted at 10% (No need to deduct education cess of 3% on the tax amount with effect from 01-10-2010). If the PAN number of the retainer is not obtained, tax to be deducted at 20%.
Time of Deduction: Deduction has to be made at the time of crediting the retainer's account in the books or at the time of payment, whichever is less.
Remittance of Tax: The amount deducted has to be deposited to the central government account through the designated bank. Remittance has to be made by using the E-payment option (Direct tax payment).
Due date for remittance: On or before the 7th of the immediate subsequent month. For example, if deduction is made on, let's say, 12th November 2010, remittance has to be made on or before the 7th of December 2010.
Interest for delayed remittance: If TDS is not remitted within the due date, interest at 1.50% per month has to be paid. Part of the month is to be treated as one full month.
Filing of ETDS return: Quarterly TDS return needs to be filed in electronic form in Form 26Q. RRR number, which is the ETDS filing acknowledgment number, has to be quoted in the TDS certificate.
Issue of TDS certificate: TDS certificate (Form 16A) with the PAN number of the deductee (Retainer) has to be issued every quarter.
From India, Bangalore
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