Hi,
I’m working in a Financial Company & we have a sub branch of Real E-state, both of the companies are separate Pvt. Ltd. farm with two different group of employee but both group employees are getting the salary from its own enrolled farm, means 1st Company (F.C.) employees from 1st Company (F.C.) & 2nd. Company (R.E) employees from 2nd. Company (R.E), as because both of the companies are partly & partially involve to each other so the salary amount which is given to employees should be distribute by both of the company (means each company should give 50% of salary to other else both the companies gonna give penalty for this.
So, can anybody suggest me how to be penalty free from this procedure & what we should write in all employees appointment letter? How they would be enrolled into both of the company?
Waiting for the response!
From India, Bangalore
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1I’m working in a Financial Company & we have a sub branch of Real E-state, both of the companies are separate Pvt. Ltd. farm with two different group of employee but both group employees are getting the salary from its own enrolled farm, means 1st Company (F.C.) employees from 1st Company (F.C.) & 2nd. Company (R.E) employees from 2nd. Company (R.E), as because both of the companies are partly & partially involve to each other so the salary amount which is given to employees should be distribute by both of the company (means each company should give 50% of salary to other else both the companies gonna give penalty for this.
So, can anybody suggest me how to be penalty free from this procedure & what we should write in all employees appointment letter? How they would be enrolled into both of the company?
Waiting for the response!
From India, Bangalore
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Dear Pushpa,
Greetings!
Double employment is not allowed in India unless specifically mentioned by contracting parties, and that too in exceptional cases. In my opinion, putting your employees on two payrolls simultaneously is a very amateurish idea.
From India, Delhi
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Greetings!
Double employment is not allowed in India unless specifically mentioned by contracting parties, and that too in exceptional cases. In my opinion, putting your employees on two payrolls simultaneously is a very amateurish idea.
From India, Delhi
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Dear Pushpa,
Please keep employees on the payroll of one company contributing 50% of their salaries, and have the others on the payroll of another company. This way, employees will avoid double employment, and accounting for the purpose of TDS will be simplified. For further savings on TDS, you may consult an income tax expert.
Thanks,
V K Gupta
From India, Panipat
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Please keep employees on the payroll of one company contributing 50% of their salaries, and have the others on the payroll of another company. This way, employees will avoid double employment, and accounting for the purpose of TDS will be simplified. For further savings on TDS, you may consult an income tax expert.
Thanks,
V K Gupta
From India, Panipat
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Well, in this case, however, the employees are employed by both companies. If you move them to be on the payroll of one company and off the payroll of the other, all the employees will be on the payroll of one company and off the payroll of the other. In this way, it will be easier to manage TDS and payroll. Additionally, by showing investment proof, you can make your TDS zero.
From India, Lucknow
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From India, Lucknow
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