Tax Management India. Com
                        Law and Practice: A Digital eBook ...

☞ Data-bank

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News D. Forum
What's New  Latest Cases 


Article Section
Home Articles Other Topics DEV KUMAR KOTHARI Experts This
← Previous Next →


Submit New Article

Discuss this article

January 5, 2022
All Articles by: DEV KUMAR KOTHARI       View Profile
  • Contents

Personalized services and remuneration:

Personalized services are considered in context of services provided by a person being an individual to other organizations.  Organized services provided by a small group of people with definite nature of services for each person of group can be considered as personalized services.

Services of individual employees, professional rendering personally services like doctor, engineer, CA, Advocate, and other professional individually are in nature of personalized services. Even in case of small  group of members working with defined work division are in nature of personalized services.

However, large group of people (say more than five)  where services cannot be related to any individual of the group may not be regarded as personalized services.

Remuneration can be described in different terms like salary, wages, fees, charges as per usages and practices in particular trade and industry and for particular type of services.

Limitation in personalized services:

In case of personalized services scope of increasing volume of services is very much restricted due to net available working hours. From 24 hours we need to deduct time required for

Personal needs – rest, daily routine work, family matters, health care. In times of Covid more time is required for personal and family health care so available time is reduced.

For attending workplace also more time is required due to restrictions.

Social and other matters.

Due to Covid19 related restrictions more time is required in following restrictions and Covid appropriate behavior.

These limiting factors are important factors while deciding rewards for personalized services.

Growth of individual depend on growth in remuneration:

In case of personalized services earned income of individual is from his one or more employers. Therefore, for growth of individual, growth in remuneration is required. If remuneration is not increased there will be  negative growth due to inflation and also due to increasing requirements with  changes in time, seniority etc.

Some real growth is earning is necessary for everyone and in case of wages earners real growth can be only by real increase in rates of wages.   

Growth for seniority:

Every year there is seniority improvement in organization and social matters. In case of jobs requiring regular learning, seniority increases with every new requirement of learning. For examples, professionals are required to update them in new developments.

In case of accounting , and legal matters continuous learning is required because every day there are changes. For example, in relation to e-filing of returns, appeals  thousands of pages are required to be read, understood and applied and one need to train also every day due to changes in portals of departments. While doing personalized services for employer or clients one has to devote lot of time in studies also. An employee can spend time out of office hours while on duty but a professional  has no such duty hours and has to spend time from his own resources.

Additional costs due to Covid19 restrictions:

Everyone is required to incur extra costs for maintaining Covid restrictions and Covid appropriate behavior due to more cleaning and hygiene material   required, masks, extra costs on transportation etc.

increased costs due to inflation and new requirements for quick replacements of computers, mobile phones, specks,  increased costs for health care and protection from viruses , etc.

Additional costs due to more work from home.

In case of personalized services an element of saving for retirement is also important.


In case of salaried employees some annual increments take place considering working requirement, seniority and also inflation if it is significant. However, in case of professionals the practice is different. Even if some volume of services is increased fees may remain stagnant. Increment in fees is not annual but different periodicity are maintained ranging from 2-5 years.

For example, a doctor, Engineer, CA in service is likely to get some annual increment, but in case he is rendering services in professional capacity, revision is likely at interval of long period.

Other factors:

Increased work due to new requirements.

increased complexities and long processes due to online functioning of filing and representations, more needs for reading of lengthy forms and rules FAQ for online working, Increased work,

Decrease in working capacity due to more health care required and protective measures, distancing, sensitization, masking etc.

Increased seniority day by day due to more need of learning of changes.

Fact that in case of personalized services increased costs of workman and his family  can be met only by increments because volumes cannot be increased in case of personalized services to increase revenue.

Bar on extra work If a wage earner want to increase volumes  by working for others,  it will impair  quality of services,  delays in services , pendency in services to be provided which will be against principal of personalized services.

Employers and clients need to consider these and similar and other factors applicable in different class of people engaged by them for availing their personalized services.


By: DEV KUMAR KOTHARI - January 5, 2022


Discussions to this article


Sir, nice write up.

By: Ganeshan Kalyani
Dated: 13/01/2022


Discuss this article

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||