अनुबंध कर्मचारी GST और TDS डिफ़ॉल्ट
Definition
Typical retainer: ₹5,00,000/month for 3–4 freelancers (writers, designers, event managers). Each contractor invoice = 18% GST. Firms often pool retainer invoices without segregating contractor vs. in-house labor, causing GST short-payment. TDS deduction missed = IT penalties + interest.
Key Findings
- Financial Impact: ₹3,00,000–₹8,00,000/year; GST penalties 25–100% of evasion (~₹15,000–₹50,000); TDS penalty ₹500–₹1,000 per default; Interest @ 18% p.a. on unpaid amounts
- Frequency: Monthly (each contractor invoice cycle)
- Root Cause: No real-time contractor classification in billing systems; manual TDS schedules not linked to payment approvals; lack of GST rate validation at invoice entry
Why This Matters
The Pitch: Mid-size PR agencies (~20–50 staff) waste ₹3,00,000–₹8,00,000 annually on contract worker GST/TDS non-compliance. Automated contractor invoice classification and TDS deduction workflows eliminate penalties.
Affected Stakeholders
Finance managers, HR/payroll, Billing admins, Tax consultants
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
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