Legal Question in Employment Law in North Carolina

Non payment of Salary, Tax etc.


Hope you are doing great. I work for Cambil Software Pvt. Ltd. company in

Bangalore, India, which is a 100% subsidiary of a Raleigh, US based GEI Inc.

The owners are three brothers, one is US citizen now, one a green card holder

and another on L1 visa. All are in US currently. From March of this year,

though they deducted TDS from our salaries, they haven't remitted the same

to the IT department. They haven't issued us the Form 16 yet. They are not

paying us salary from Apr also. They are keep buying time to pay salary

saying it will be done in one week, two weeks etc. and now if we ask about it,

immediate action is to cut some or the other benefits of the employee asking

question. Also threats are issued against any one walking off the company in

frustration of non pay. The talk is do all the work and we will pay you when

we will. The company has assets worth enough to cover all the outstanding

dues and also the owners has property in India. What are our options? What

can be done?

Thanks, Harry

Asked on 6/10/06, 1:16 am

1 Answer from Attorneys

Nand Kishore NK Associates

Re: Non payment of Salary, Tax etc.

Dear Harry,

Under the Income Tax Act, it is an offence on the part of the employer not to pays the TDS to the Department despite collecting the same from the employees. Further the employer is also bound to issue you the TDS certificate or Form 16 so as to enable you to file your income tax return.

As you have mentioned you company is a private ltd. company and therefore is a permanent establishment in India and therefore the Income tax department can issue notice and initiate legal proceedings against your employer.

In so far as your dues are concerned, I am sure at the time of hiring you, the company would have entered into an employment contract with you which would clearly specify when the Company shall make payment of salaries. You may request you company in writing and demand you outstanding dues and Form 16. If the company does not take any steps, then you may issue a legal notice through your lawyer for demanding the outstanding and Form 16. You may also inform the Income tax department about the lapse on the part of the Company.

Please revert back for any further queries.


Nand Kishore.

Attorney at Law

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Answered on 6/10/06, 2:37 am

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