Deduction of tax at source u/s 194j

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2012 Can a hospital deduct TDS u/s 194j at the time of payment to doctors.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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06 November 2012 If doctors on payroll, TDS under section 192 will apply.
If payment to doctors on visiting basis under professional capacity, then TDS under section 194J is applicable.

SANYAM ARORA

SANYAM ARORA (Expert)
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06 November 2012 Agreed with the reply

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2012 My query is regarding the time of deduction of tax u/s 194J i.e. whether, hospital can deduct TDS at the time of payment to doctors or it is necessary to deduct the tax at the time of crediting his/her account. Further, is there is any case law for the same please provide.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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06 November 2012 As per the TDS provisions, it is clearly stated that the tax has to be deducted at source at the time of crediting to beneficiary account or at the time of payment whichever is earlier.