Consultant vs Retainer

Querist : Anonymous (Querist) 13 December 2009 This query is : Resolved
What is the difference between Consultant vs Retainer wrt to Indian Income Tax Act.
Is there any difference, if yes, what is the tax impact for the same. Thanks
regards
Kalyan

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Vineet (Expert) 13 December 2009
As far as Income Tax Act is concerned, the expenditure incurred on both is allowable as deduction if incurred for the purposes of business.

Raj Kumar Makkad (Expert) 13 December 2009
Consultant is a person who only provides consultancy as and when required whereas the retainer is a person on the penal already engaged to perform certain work on regular basis.

So far impact qua taxation is concerned, nothing is specific in either of the case.

Querist : Anonymous (Querist) 13 December 2009
Thanks for your response. Is there any provision which deals if the company appoints a foregin national as consultant or retainer

Thanks

regards
Kalyan

Ashok Yadav (Expert) 14 December 2009
Mr. Raj Kumar has explained it very clearly, thanks for this

S.KARUNAMOORTHY (Expert) 14 December 2009
Thanks to raj kumar.. his obsercation is very right.

Vineet (Expert) 14 December 2009
Appointment of a foreign National as Consultant or Retainer will attract withholding tax provisions as well as deemed income u/s 9(10(vii) being fee for technical services.

Please examine withholding tax liability accordingly.

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