23 March 2009
I need a clarification. a company is paying Rs. 1 Lac as surgery fees to a private hospital for treating one of its employee who met with an accident while working in factory. While making payment to hospital, should we deduct TDS on surgery fees.
23 March 2009
Yes. TDS needs to be deducted u/s 194J as this is a professional fees.
Also, there may be a case where hospital will not agree for the TDS hence the employer can make a payment to employee on presentation of bill from hospital as reimbursement and employee can make a payment to hospital in which case employee is not lioable to deduct the TDS.