I am appointed as CFO on contract basis (or Retainer) in hospital instead of as employee on Fixed Monthly Amount. Do I need to pay GST. What is TDS rate and section company should deduct taxes. Also my attendance are marked. I am eligible for 24 days leave
From India
From India
It is understood that you are not a retainer but an employee only. Even though your employment is for a fixed term, you will be covered by all the rules and regulations concerning employment of persons. A retainer is a person whose expert advise is taken as and when required. He will not regularly attend to the office but he visits the office only when his presence i required in the office. He will never ask for leave, and will never follow the office timing. The fee paid is called retainer fee,and that will come under the head of Professional fee. This is a service and he can issue an invoice which may include GST. Since you have been allotted leaves, your status is not as Consultant/ Retainer but an employee.
The question of GST will not arise in your case because your relationship with the company is that of employee and employer. Being an employee your remuneration should be subjected to tax deduction at source under the head "Salaries" only. The TDS should be made as per section 192 and not u/s 194J. 194J is applicable for professionals whereas the former is applicable for employees, It s worth referring Wockhardt Hospitals Limited, ... vs Department Of Income Tax in which it was observed that the remuneration paid to doctors appointed as consultants was chargeable to tax under the head 'salaries' and liable for deduction of tax u/s. 192 of the Act not under the provisions of section 194J of the Act.
From India, Kannur
4220The question of GST will not arise in your case because your relationship with the company is that of employee and employer. Being an employee your remuneration should be subjected to tax deduction at source under the head "Salaries" only. The TDS should be made as per section 192 and not u/s 194J. 194J is applicable for professionals whereas the former is applicable for employees, It s worth referring Wockhardt Hospitals Limited, ... vs Department Of Income Tax in which it was observed that the remuneration paid to doctors appointed as consultants was chargeable to tax under the head 'salaries' and liable for deduction of tax u/s. 192 of the Act not under the provisions of section 194J of the Act.
From India, Kannur
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