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Last updated: 2 October 2026
Businesses increasingly work with consultants, advisers and freelancers instead of hiring. Expertvuw’s team drafts consultancy agreements that define deliverables and fees, assign IP, protect confidential information and keep the relationship clearly independent.
A consultancy agreement engages an individual or firm to provide services as an independent contractor rather than an employee. It sets out the scope of services and deliverables, fees and payment schedule, expenses, term and termination, confidentiality, ownership of work product, non-solicitation, data protection and dispute resolution.
The distinction from employment matters. If a consultant works like an employee — fixed hours, supervision, integration into the team — authorities or courts may treat the relationship as employment, bringing labour code and social security obligations. The agreement and actual practice should both reflect independence.
Tax terms should cover TDS on professional or technical fees under the Income-tax Act, 2025 (applicable from 1 April 2026) and GST where the consultant is registered. Under the Copyright Act, 1957, work created by a consultant belongs to the consultant unless assigned in writing, so an IP assignment clause is essential for deliverables such as code, designs and reports.
Basis: Indian Contract Act, 1872; Copyright Act, 1957 (sections 17–19); Income-tax Act, 2025 (TDS on professional fees); CGST Act, 2017; labour codes (employment status). Last updated: 27 September 2026.
Not an employee — terms and practice must reflect this.
Consultant-created work needs a written assignment.
Professional and technical fees attract TDS.
Applies where the consultant is GST-registered.
Should survive the end of the engagement.
Employee-like control can create labour law obligations.
Consultancy relationships often drift into employment.
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Consultancy agreements connect with these services.
Employment contracts.
Service framework contracts.
Confidentiality agreements.
TDS on professional fees.
Understand the engagement.
Prepare the agreement.
Check independence and tax terms.
Finalise with the consultant.
Execute and stamp.
Track deliverables and payments.
Manage the engagement as agreed.
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Share your query and our team will reply during business hours.
A consultant is an independent contractor controlling how the work is done; an employee works under the employer’s direction and control.
The consultant, unless copyright is assigned to you in writing.
Yes, on professional or technical fees above the thresholds under the Income-tax Act.
If registered under GST, the consultant charges GST on fees.
Exclusivity during the engagement is possible; post-engagement restrictions need care under section 27.
ACS – Director, Expertvuw Management Pvt Ltd
Agreements and policies are drafted by Expertvuw’s team for your review and negotiation. Where you need a legal opinion, dispute advice or representation, it is provided by independent advocates. Expertvuw is a corporate services company, not a law firm.