23 August 2010
Dear all experts Kindly go through the case and let me know the applicability of TDS A hospital recognised under various health insurance scheemes The hospital provides medical treatments to those patients who have taken health insurance policies At the time of providing treatement to patients The hospital needs to Pay scanning fee to Scanning Centre on behalf of patients. The Scanning centre raise the bills in the name patients.The hospital did not made any TDS on scanning fee paid to Scanning centre. The hospital makes following entry in the Books at the time of Payment of Scanning fee Dr: Advance to Patient Cr: Cash at the time of receipt of fee from insurance company the entry passed is Dr: Bank Cr: Advance to patient Cr: treatement fee received The Hospital's subbmission is as below The bill is raised in the name patient & any payment made to scanning centre is on behalf of patients.And it is not expenditure to Hospital hence no TDS is frequired. Kindly let me know whether the hospital's subbmission is Correct or is it liable to make TDS.
CAclubindia
