Service Tax for Contract Employee

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  1. MS Duggal

    MS Duggal New Member

    Your forum mentioned taxable income equals total amount received minus expenses incurred to generate that income.
    My Q1: Are deductions under 80C , 80DD and 80G not deductible?
    Q2: if contract employee is a full time professional working within the company's permises, is he liable to pay service tax?
  2. A 1:Deductions under 80 C, 80 DD & 80 G are deductible subject to limits laid down in relevant sections.
    A 2: He is liable to pay service tax,as he is a contract employee.
  3. MS Duggal

    MS Duggal New Member

    Thanks, Mr Alkesh Mehta. However, in this case, the employee was a regular employee but now since he has reached retirement age, from now on he will be contract employee. His duty is exactly same as before. Company regulations equally apply to him except he does not get PLI, LTA, gratuity etc.
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    If the total value of services is more than Rs. 10 Lakhs - Service Tax would be applicable on Contract Employees as well
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