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Free letter template · Word

Consultant Appointment Letter

A consultant appointment letter engages an independent professional to advise the company for a fee, without creating an employer-employee relationship. It covers scope, professional fees, invoicing with GST where applicable, TDS deduction and confidentiality.

  • Editable Word (.docx)
  • Made for India
  • 19 fill-in fields highlighted
  • Free, no sign-up

Preview of the letter

[Highlighted] = fill in
[Company Logo][Company Name]

LETTER OF ENGAGEMENT – CONSULTANT

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Consultant Name]
[Consultant Address]
PAN: [PAN] GSTIN: [GSTIN, if applicable]

Subject: Appointment as Consultant – [Area of Consultancy]

Dear [Consultant Name],

[Company Name] is pleased to engage you as an independent consultant for [Area of Consultancy] on the terms below.

  1. Term: From [Start Date] to [End Date], renewable by mutual written agreement.
  2. Scope of services: [Scope of Services]. Deliverables: [Deliverables], due as per the agreed timeline.
  3. Professional fee: ₹[Amount] per [month/deliverable], plus GST if applicable, payable within [Payment Days] days of receiving a valid invoice. TDS will be deducted as per income-tax law.
  4. Expenses: Pre-approved travel and out-of-pocket expenses will be reimbursed against bills.
  5. Independent status: You are engaged as an independent professional. Nothing in this letter creates an employment relationship, and you will not be entitled to salary, PF, ESI, gratuity or leave.
  6. Coordination: [Coordinator Name], [Designation], will be your point of contact.
  7. Confidentiality: You shall keep all information received from the company confidential during and after this engagement.
  8. Ownership: Reports, documents and other work product prepared for the company will belong to the company.
  9. Conflict of interest: You will inform us before taking up any assignment for a direct competitor during this engagement.
  10. Termination: Either party may end this engagement with [Notice Days] days' written notice. Fees for work done until then will be paid.

Please sign and return a copy of this letter to confirm your acceptance.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Accepted
[Consultant Name]
Signature: ____________
Date: [Date]

What this template includes

  • Scope of services and deliverables
  • Professional fee and invoicing cycle
  • GST and TDS treatment of fees
  • Independent status: no salary, PF or leave
  • Confidentiality and ownership of reports
  • Termination by either side with notice

When to use it

  • Engaging a retired expert, CA, architect or industry adviser
  • Short advisory work such as a process audit or strategy review
  • Part-time specialist support without adding headcount
  • Engaging a consultant for compliance or certification projects

How to customise this template

  1. 1Describe the advisory scope in specific terms
  2. 2Choose a monthly retainer or per-deliverable fee
  3. 3Ask the consultant for PAN and GSTIN
  4. 4Set the engagement period and renewal

HR tips

  • Do not control a consultant like an employee (fixed hours, attendance) or the relationship may be treated as employment
  • Deduct TDS on professional fees as applicable
  • Keep the scope measurable to avoid fee disputes
  • Get IP in reports assigned to the company

This template is a starting point only and does not create employment. Review it against applicable labour laws (including the Labour Codes in force from 21 November 2025 and the state rules being notified), your Shops & Establishments registration, standing orders and company policies, and take advice from a legal adviser where needed.

For HR & hiring managers

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Frequently asked questions

Is a consultant an employee?+

No, if the engagement is genuinely independent. The consultant invoices fees, has control over how they work, and receives no salary or employee benefits.

Is TDS deducted on consultant fees?+

Yes, TDS on professional or technical fees generally applies above the threshold. Check the current rate and threshold with your accountant.

Should a consultant charge GST?+

If the consultant is registered under GST, they will add GST to their invoice. Ask for the GSTIN at onboarding.