Civil Procedure Code (CPC)

Employees on retainer ship consultants eligible for gratuity

FIN

Employees on retainer ship consultants eligible for gratuity*****

Other than apprentice anyone who is employed for wages and renders uninterrupted service for 5 years {240 days in a year} is eligible for gratuity. The corporate understanding on nature of association is not mentioned. The act is an independent legislation. The association may be in writing or in practice and reality.

 

Given below and attached is an interesting publication and decision as recent as July,2012.

“paid to Professionals is taxable as salary if required to follow rules similar to employees”

 

 

“The Learned Hyderabad Bench of ITAT has held that where a professional is treated as an employee and is required to follow the rules and regulations similar to that imposed on its employees or his terms of appointment are such that those intend to create an employer employee relationship, then the payment made to professional is required to be treated as a salary and not as a professional fees and TDS is required to be deducted in its employees or his terms of appointment are such that those intend to create an employer employee relationship, then the payment made to professional is required to be treated as a salary and not as a professional fees and TDS is required to be deducted in terms of section 192 of Income Tax Act.”

Valuable advice of learned experts/members is sought.

Payment of Gratuity Act, 1972

Section: 2
Definitions.

 

 

(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].

Explanation : [5] [***]

 

 



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