Hi,
1. If highly skilled retired employees rejoin the same office where they are now receiving a monthly consolidated payment, what would be the TDS and service tax compliance?
2. Can we account for such payments as salary payments?
3. If the above employees are from the IV class, i.e., peon, where they receive payments of less than 15000, what would be the PF compliance? Is there any age bar for PF contributions?
Please let me know if you need any further clarification or assistance.
From India, Mumbai
Acknowledge(0)
Amend(0)
1. If highly skilled retired employees rejoin the same office where they are now receiving a monthly consolidated payment, what would be the TDS and service tax compliance?
2. Can we account for such payments as salary payments?
3. If the above employees are from the IV class, i.e., peon, where they receive payments of less than 15000, what would be the PF compliance? Is there any age bar for PF contributions?
Please let me know if you need any further clarification or assistance.
From India, Mumbai
Acknowledge(0)Amend(0)
Retired employees, when reengaged by the same employer, must deduct TDS as applicable and may choose to pay service tax, provided that the employee has a TIN number. EPF and ESI shall not be applicable upon completion of 58 years of age.
Regards,
V. Murali
From India, Madipakkam
Acknowledge(0)Amend(0)
29Regards,
V. Murali
From India, Madipakkam
Acknowledge(0)Amend(0)
There is no age limit for ESI coverage. Therefore ESI contribution has to be paid. Regards N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; e-mail : natraj@sakthimanagement.com)
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
TDS is applicable as per the IT Act. Service Tax is not applicable since they are not service providers. The question of TIN does not arise.
ESI is applicable provided the Monthly Gross Emoluments are below the coverage limit of Rs 21,000/- PM. The same ESI insurance number is to be used.
With regard to PF, obtain Form 11 (New) Declaration Form. Ensure that they have withdrawn their EPF accumulations and are drawing EPS pension, if eligible. In such a scenario, you need not cover them under PF on the grounds that the employee has attained the age of retirement of 58 years at the time of rejoining and having been a member of EPF earlier has withdrawn PF accumulations.
From India, New Delhi
Acknowledge(0)Amend(0)
ESI is applicable provided the Monthly Gross Emoluments are below the coverage limit of Rs 21,000/- PM. The same ESI insurance number is to be used.
With regard to PF, obtain Form 11 (New) Declaration Form. Ensure that they have withdrawn their EPF accumulations and are drawing EPS pension, if eligible. In such a scenario, you need not cover them under PF on the grounds that the employee has attained the age of retirement of 58 years at the time of rejoining and having been a member of EPF earlier has withdrawn PF accumulations.
From India, New Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Pension Calculation with all Papers for W.B.Govt Employees(Retir ed Employees).xls
Job Work-outwork employees.docx