If I join a company on a monthly retainer basis on 80K/M How much TDS and do I have to charge any service tax.

Should I work as a consultant or employee on a salary basis, to avail better tax benefits?

Answer:
You Do not have to deduct the tax. So the tax will be deducted by you Master (Employer). You amount / payment will be under "professional fees", and the rate of TDS is 5%.

Service tax depends on the terms and condition agreed by you and the contractee. Whether the payment to you 80K/M is includeing service tax or Not. [Note if total m\amount in the Financial year exceed Rs 4,00,000/- you have to pay service tax. As per contract you may charge the same from the contractee]

If you can manage account, you may reduces the expenses from the total amount you got yearly [80K*12] = 960K .

So, the taxable amount might be reduced to great extent.

In the salary , no such deduction is allowable and entire amount Rs 960K will be taxable.

When you got handsome amount, employ one accountant who will keep your accounts, you may pay less in terms of taxes. Other Questions and Answers:
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