08-20-2009, 02:15 PM
Dear,
If the said person has been hired under section 153(C) and payment is being made on the basis of Signed Contract then Tax @ 6% should be deducted, otherwise, should be taxed under section 149.
However, In such cases, one should refer to the terms of agreement which might stipulate conditions attached with regards to the services/employment of such person.
In my view, such person should be taxed @ 6% instead of 9%, since it is beneficial in favour of the said person, and accordingly an agreement should be made, which should reveal that the said person has been hired as a consultant, so that it shall be treated as an evidence, which would shelter as and when such necessity is arisen.
No Medical allowance and other benefits will be provided in case of taxing him under section 153(C), however, if provided, then these benefits will also be included in his consideration for the purpose of taxation under section 153(c) and accordingly tax will be deducted.
Best Regards,
If the said person has been hired under section 153(C) and payment is being made on the basis of Signed Contract then Tax @ 6% should be deducted, otherwise, should be taxed under section 149.
However, In such cases, one should refer to the terms of agreement which might stipulate conditions attached with regards to the services/employment of such person.
In my view, such person should be taxed @ 6% instead of 9%, since it is beneficial in favour of the said person, and accordingly an agreement should be made, which should reveal that the said person has been hired as a consultant, so that it shall be treated as an evidence, which would shelter as and when such necessity is arisen.
No Medical allowance and other benefits will be provided in case of taxing him under section 153(C), however, if provided, then these benefits will also be included in his consideration for the purpose of taxation under section 153(c) and accordingly tax will be deducted.
Best Regards,
