Hi Friends, I have Proprietary firm with 7 employees on full time salary with Minimum 20000/- PM for each. We are registered under Service Tax Act, do we need to deduct TDS on salaries and should PF is compulsory for us to apply for.
I need your guidelines on the same issue.
Regards
Sumeet
From India, New Delhi
I need your guidelines on the same issue.
Regards
Sumeet
From India, New Delhi
HI Mr. Sumeet
What ever the organisation if the wages falls under income tax slabs sure you should deduct TDS. But for the salary of 20,000/- TDS is not applicable if you can wisely prepare the salary structure.
From India, Bangalore
639What ever the organisation if the wages falls under income tax slabs sure you should deduct TDS. But for the salary of 20,000/- TDS is not applicable if you can wisely prepare the salary structure.
From India, Bangalore
Pl. Note
EPF act is applicable wherever 20 or more employees are working including direct and indirect i.e. through contractor,
or on contract basis + casual etc.
So in your case, if you have other than 7 staff members, any other staff, employees appointed indirectly, the EPF act
would be applied accordingly.
2ndly, TDS is applicable subject to individual tax planning. Otherwise in your case as you have put-up, in current
F.Y. 2012-13, annual salary income of individual is Rs.20,000/- X 12 = 2,40,000/- (plus bonus if any payable/due to him)
First 2 lacks are exempt, on balance 40000/- tax liability would be 4,120/-. monthly TDS will have to be deductible
344/- per month during April 2012 to March 2012 in equal installment. You needs to obtain TIN No. for the same.
Feel free to contact for more details
Pramod Thakar & Associates
Pune
9822435423
From India, Pune
EPF act is applicable wherever 20 or more employees are working including direct and indirect i.e. through contractor,
or on contract basis + casual etc.
So in your case, if you have other than 7 staff members, any other staff, employees appointed indirectly, the EPF act
would be applied accordingly.
2ndly, TDS is applicable subject to individual tax planning. Otherwise in your case as you have put-up, in current
F.Y. 2012-13, annual salary income of individual is Rs.20,000/- X 12 = 2,40,000/- (plus bonus if any payable/due to him)
First 2 lacks are exempt, on balance 40000/- tax liability would be 4,120/-. monthly TDS will have to be deductible
344/- per month during April 2012 to March 2012 in equal installment. You needs to obtain TIN No. for the same.
Feel free to contact for more details
Pramod Thakar & Associates
Pune
9822435423
From India, Pune
Hi Mr. Pramod,
Thanks for your advise. We are showing the salary structure like below: For employee with package of 22,000 PM
Basic 65% (14300)
HRA 10% ( 2200)
City Compensatory Allw. 5% (1100)
Conveyance 5% (1100)
Medical 5% (1100)
Education 5% (1100)
LTC 5% (1100)
Gross and Net payable is 22,000/- only and no PF as we never applied for EPF.
Is our calculation is correct or not. We are registered only under Service Tax Act.
Regards
Sumeet
From India, New Delhi
Thanks for your advise. We are showing the salary structure like below: For employee with package of 22,000 PM
Basic 65% (14300)
HRA 10% ( 2200)
City Compensatory Allw. 5% (1100)
Conveyance 5% (1100)
Medical 5% (1100)
Education 5% (1100)
LTC 5% (1100)
Gross and Net payable is 22,000/- only and no PF as we never applied for EPF.
Is our calculation is correct or not. We are registered only under Service Tax Act.
Regards
Sumeet
From India, New Delhi
Mr. Sumeet,
You needs to design salary structure as well as needs to consider + / -, other HR and Taxation matters with the
proper consultation.
If you are from Pune, you may consult us in this matter or you should take from your Home town labor consultant.
Regards
Pramod Thakar
From India, Pune
You needs to design salary structure as well as needs to consider + / -, other HR and Taxation matters with the
proper consultation.
If you are from Pune, you may consult us in this matter or you should take from your Home town labor consultant.
Regards
Pramod Thakar
From India, Pune
Dear
Salary break up should be made after taking income tax in to consideration.
you should have atleast 40% of basic as HRA in other towns like pune and in metro you can have HRA up to 50% which is tax exempted.secondly conveyance should not be more than 800 per month because that is tax exempted.besides this you can have medical reibrusement upto 15000 per year which is tax exempted.
From India, Delhi
Salary break up should be made after taking income tax in to consideration.
you should have atleast 40% of basic as HRA in other towns like pune and in metro you can have HRA up to 50% which is tax exempted.secondly conveyance should not be more than 800 per month because that is tax exempted.besides this you can have medical reibrusement upto 15000 per year which is tax exempted.
From India, Delhi
hey Pramod Thakar, I am Working with a company and getting salary of 22000 but my boss give it in cash no bank transaction I deposit my sal in bank account as and when i get salary. my co doesn't provide salary slip we dont have TDS PF EPS kind of system. But If want to change Job in good firm what document should I must retain with me and if possible the salary structure of 22000 where in no TDS EPF mentioned. please reply as soon as possible
From India, Mumbai
From India, Mumbai
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