Tds on payment to hospital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2011 In case of emergency copmany is paying medical bill to hospital on behalf of employee and later employee reimbursed it to the company. Will TDS applicable on payment to hospital as it will not sit in p & l of company book.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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02 September 2011 I must say that liability of deduction would be of company u/d 194J if it does not take the re-imbursement. But in your case it is the case where company is getting the money reimbursed what it had spent on behalf of its employee. The company may need to deduct TDS from the amount paid u/s 192 that is from salary of the employee if his salary is liable for TDS. Since it is nothing but a type of advance made by the company to its employee.
Hope you are clear now.