Indian Contract Act, 1872
Governs the consultancy agreement as a valid contract between independent parties.
Formalise your expertise.Protect your advisory relationship.
A Consultancy Agreement that legally distinguishes your engagement from employment, protects both parties' interests, and prevents misclassification and tax liability.
Independent ContractorAdvisory ServicesTDS ComplianceConfidentiality
Rs 2,999
All-Inclusive
TDS Ready
Section 194J
3 Days
Delivery
What we handle for you
A Consultancy Agreement that establishes independent contractor status, protects confidential information, and clearly defines the advisory engagement.
Independent Contractor Status
Establish independent contractor status to prevent misclassification as employment — with significant tax and labour law implications for both parties.
Scope & Fee Structure
Draft clear scope of advisory services with defined deliverables or time commitments, and structure fee payment terms — retainer, per-session, or milestone-based.
Confidentiality Obligations
Include confidentiality obligations covering all business information accessed during the engagement — with breach remedies.
IP & Non-Solicitation
Draft IP ownership clauses for materials produced by the consultant and include non-solicitation clauses preventing poaching of clients or employees.
The 4-Step Drafting Process
From engagement details to a signed consultancy agreement — protecting both the company and the consultant.
01
Share Engagement Details
Provide the consultant's profile, nature of advisory services, fee structure, engagement duration, and any specific concerns.
02
Lawyer Prepares the Agreement
Our lawyer drafts a Consultancy Agreement that clearly establishes independent contractor status and protects both parties' interests.
03
Review & Finalise
Both parties review the draft and confirm all terms before signing.
04
Executed Agreement
The signed agreement serves as the foundation for the engagement and protects both parties if disputes arise.
Legal Framework
Consultancy engagements in India are governed by contract law, tax law, and labour law — making proper documentation critical.
Income Tax Act, 1961
Consultant fees are treated as professional income — TDS under Section 194J applies at 10%.
Copyright Act, 1957
Governs ownership of reports, analyses, or other materials produced by the consultant during the engagement.
Arbitration and Conciliation Act, 1996
Governs dispute resolution if arbitration is chosen as the mechanism in the agreement.
Client Success Stories
“We had a consultant who claimed employment benefits after 18 months. Our old agreement didn't make the distinction clear. LegalKonnect drafted a water-tight contract — no ambiguity now.”
RI
Ramesh Iyer
Chennai“As a freelance consultant, I needed an agreement that protects my IP and specifies payment terms clearly. The lawyers here drafted exactly what I needed — professional and specific.”
KK
Kavitha Krishnan
BengaluruFrequently Asked Questions
Stamp Duty Not Included
Government stamp duty charges apply to registered documents and vary by state. These are paid directly to the government and are not part of our service fee. Your advocate will confirm the applicable amount for your state before any document is executed.
A consultant is an independent contractor engaged for specific expertise, controls how they work, may serve multiple clients, and does not receive employment benefits. An employee works under the employer's direction, has fixed terms, and receives statutory benefits. Misclassification can lead to significant tax and labour law liability.
Yes. Under Section 194J of the Income Tax Act, TDS at 10% must be deducted on professional fees paid to a consultant whose total fees exceed Rs. 30,000 per year.
Unless the Consultancy Agreement includes an exclusivity clause, consultants are free to work with other clients — including competitors. If exclusivity is required, it should be explicitly stated and may require higher compensation.
A well-drafted confidentiality clause allows the company to seek an injunction, claim damages, and pursue other remedies. The consultant can be held liable for the full financial loss caused by the breach.