Tds on amount deposited in labour court
manoj
(Querist) 16 May 2018
This query is : Resolved
Hi case- Due to Employer Illegal Layoff by software company in year 2013 in Hyderabad, One Employee who work for 3 years in that company file case in labor court against Company, And got Judgement in his favor in year 2016 (Award declared in Judge order = 4 year salary 32Lac + Reinstatement of Job) . But company did not accept Labour court order and file appeal in High Court HC ask to pay 50% of Award i.e.Rs 16L and company deposited that Amount in Court Can some one guide me company liability to deposit TDS on that amount, 16L as Company Has deposited amount (which was nothing but Salary due x 50%)
Or any other advice to comply
P. Venu
(Expert) 17 May 2018
Has the Company recovered any TDS from the arrears paid? And have they issued Form 16?
Kumar Doab
(Expert) 17 May 2018
You may revert to the points raised by Mr. P . Venu.
manoj
(Querist) 18 May 2018
Company Directly deposited Rs 16 L at Labour court
No TDS Deducted / deposited and no entry of TDS in books of account of company
normally in income tax law, income from salary arises on due or receipt basis whichever is earlier, and employer liability arises respectively on TDS payment to department
Here what is paid in labour court is only 50 % Salary due till date . but confusing is whether court order to pay such amount (HC order to deposit it, before case it put for appeal before HC)
is deemed as salary if we look from income tax TDS provision.
Ms.Usha Kapoor
(Expert) 18 May 2018
Labopr court award is more just. From facts it appears.Company is liable to deposit TDS.
Guest
(Expert) 18 May 2018
Seems to be just an academic query, not a real problem. However, in what way you are concerned with the employee, company or the award by labour court?
Guest
(Expert) 18 May 2018
Totally wrong advice of Ms. Usha Kapoor. Even if it is a real case and you are related in any manner with the case, you have not stated whether the amount deposited with the High Court has been disbursed to the employee or not.
Guest
(Expert) 18 May 2018
If award not accepted and appeal filed by the company the amount deposited with the court in compliance with court's order cannot be considered as salary. The whole amount is subject to be returned to the company in case the judgment goes in its favour. Question of TDS would arise only at the time of disbursement. Even if TDS not deducted due to any reason that would be the liability of the employee to deposit the tax amount at his own.
manoj
(Querist) 18 May 2018
@ usha - I also feel TDS should be deposited by Company by following Lower court Order(though appeal is pending in HC) .
@Jigyasu - Its real case, I am Employee. I am from CA Field
@ Dingra - Your advice is correct if we look it from future outcome .
but can we find in law which states "applicability of other other laws ,till time of final outcome comes, interconnected with matter pending in court"
thanks friends
Guest
(Expert) 18 May 2018
@ Mr. Manoj,
If you are the concerned employee and working as a CA in the company, with what consideration the Labour Court entertained your case of termination and salary?
manoj
(Querist) 18 May 2018
I completed my CA degree after they removed me.
previously as account manager (with now powers or decision making powers)
Guest
(Expert) 18 May 2018
How many employees were working under you when you were account manager?
Also, your reply is wanting on the issue on which consideration your case was entertained by the Labour Court?
manoj
(Querist) 18 May 2018
no one under me
, we all were reporting to admin head
T. Kalaiselvan, Advocate 
(Expert) 18 May 2018
There cannot be any TDS amount for deposit in the court.
The TDS aspect can be considered only at the time of making final payment as per court judgment
It is not an arrears of salary paid nor this is paid to the employee as salary, the court has ordered to deposit the specified percentage of amount hence there is no question of TDS on this, dont stretch your own imagination on this when there is no provision of law for this.
Guest
(Expert) 18 May 2018
You have been continuously avoiding reply to one specific question. Can you reproduce the text of the order in the award by the Labour Court?
Kumar Doab
(Expert) 18 May 2018
IT=@PSD
is copying advice's of Experts and Shri Kumar Doab
e.g; how many persons work under you!
Stop the daily nuisance in this thread also and do something else.....e.g; typecast work that IT has been doing..!
Now IT=@PSD will run to litter IT's trademark nuisance/sarcasm/Tamashaa with IT being sole Tamashbeen ( It's own favorite words)...at profiles of querist, members, Experts, LCI, LCI Admin..
Kumar Doab
(Expert) 18 May 2018
IT=@PSD
is the same entity and postor at post number 6th,7th, 8th in this threads and as usual
IT=@PSD=NIL,ZERO in this and all threads from day1 under all of IT's multiple fake ID's including above and others that have been shunted out and blacklisted..
manoj
(Querist) 18 May 2018
order/ award text-
the petition is allowed with cost and respondent is directed to reinstate the petitioner into service within three month of publication of award with full back wages and other benefits"
Guest
(Expert) 18 May 2018
Wages have not yet been paid to you. Any deposit at the order of the higher court is just an interim deposit to be decided later, who to claim as per the decision of the High Court. Question of TDS would arise only if paid as wages to you.
Guest
(Expert) 18 May 2018
Two latest vague and irrelevant posts, being out of context, on the part of Mr. Kumar Doab, a fake expert with unreal name, represent a nice example of his perturbed mind, as a quack.
.
P. Venu
(Expert) 18 May 2018
Perhaps all this confusion could have been avoided had the query brought out the fact that the HC is yet to decide the appeal and the amount deposited is just the pre-requisite in order that the appeal could be filed.
The question of TDS becomes relevant only when the HC decides the appeal.
manoj
(Querist) 18 May 2018
yes, Its was my mistake posting in pieces,
Thanks to you all , for healthy discussion
T. Kalaiselvan, Advocate
(Expert) 18 May 2018
Thanks for your appreciation, hope you are convinced and understood the concept of TDS on the court deposit.
Guest
(Expert) 18 May 2018
TDS would become due, as and when the employer actually pays you any amount in the name of the wages after the final verdict of the competent court. He was not authorised to deduct even a single penny as TDS out of the amount deposited with the Court.
