Hi Team, I have joined a new industry that is the NBFC sector. Here we are giving new joiners as a consultant. So now how I will create a salary breakup for a consultant. I have done this to avoid PF and ESI. How can I provide salary slips according to Haryana laws? ours based in Gurgaon. It's urgent.
From India, New Delhi
From India, New Delhi
When you say 'consultant', I assume you mean that they are professionals and not employees. In that case, they will raise an invoice on you at the end of each month and you will pay them like any vendor invoice. Therefore you can not give them a salary slip and no breakup of the salary is needed.
Please note you will need to deduct 10% TDS on their invoices.
From India, Mumbai
2395Please note you will need to deduct 10% TDS on their invoices.
From India, Mumbai
Normally it is termed as a Professional Fee and no term as Salary or Consolidate Salary etc., to be used. Only a TDS will be applicable and not other deductions such as PF or ESI would be applicable on this fee.
From India, Chennai
From India, Chennai
Hello Seniors, Thank you so much to share with me such valuable information. Regards, Ripti Verma
From India, New Delhi
From India, New Delhi
First of all your question and statement is confusing: It is;
A. Are you a consultant company, that provides people to work in industry. OR
B.Are you entrusted with the job of giving Salary Slip to employees.
My opinion is:
1. First of all NBFC Sector - what is the agreement with them? Are they teaching you to avoid PF & ESIC? which is illegal and the contract will be void if contested.
2. Secondly, If you are a consultant and providing staff as consultant you are taking care of the staff PF & ESIC and other taxes as are applicable to employees and a statement to that effect should be submitted to the company to submit as addendum to PF & ESIC department for the part of employees provided by you on contract basis.
3. Naturally you know the salary structure of employees that are payable and also what are statutory deductions towards PF, ESIC & TDS and others such as loan or any other agreed deductions, thereby arriving at the Net Pay you remit to the Employees Bank Account.
4. Normally, Time sheet is prepared by contracted company for each employee provided by you and their hours of work every week, month.
5. That is the primary one for calculating their hours to enable you to raise your Invoice for the number of hours your employee worked as stipulated in the contract.
Finally I should stress PLEASE DO NOT TRY TO BY PASS THE LAW OF PF & ESIC Which are statutory for the benefit of employees and which ultimately stand for working force in India to get benefitted.
Your thinking should change for the welfare of employees work force as you are earning out of their sweat and hard work. So don't do such acts, even if you are part of a team. Just resign if such is you job, as you are also an employee in the eyes of law from other angle.
From Saudi Arabia
A. Are you a consultant company, that provides people to work in industry. OR
B.Are you entrusted with the job of giving Salary Slip to employees.
My opinion is:
1. First of all NBFC Sector - what is the agreement with them? Are they teaching you to avoid PF & ESIC? which is illegal and the contract will be void if contested.
2. Secondly, If you are a consultant and providing staff as consultant you are taking care of the staff PF & ESIC and other taxes as are applicable to employees and a statement to that effect should be submitted to the company to submit as addendum to PF & ESIC department for the part of employees provided by you on contract basis.
3. Naturally you know the salary structure of employees that are payable and also what are statutory deductions towards PF, ESIC & TDS and others such as loan or any other agreed deductions, thereby arriving at the Net Pay you remit to the Employees Bank Account.
4. Normally, Time sheet is prepared by contracted company for each employee provided by you and their hours of work every week, month.
5. That is the primary one for calculating their hours to enable you to raise your Invoice for the number of hours your employee worked as stipulated in the contract.
Finally I should stress PLEASE DO NOT TRY TO BY PASS THE LAW OF PF & ESIC Which are statutory for the benefit of employees and which ultimately stand for working force in India to get benefitted.
Your thinking should change for the welfare of employees work force as you are earning out of their sweat and hard work. So don't do such acts, even if you are part of a team. Just resign if such is you job, as you are also an employee in the eyes of law from other angle.
From Saudi Arabia
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Typical salary breakup.jpg
Salary breakup.xls
Salary Breakup Annexure.doc