Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
30 January 2016Can company pay more than 20000/- in cash for Hospital Expneses to the hospital in case of Employee admitted. Also TDS is applicable on bill value which includes, Visit Fees, Room Charges, Consultation Fees, etc. etc.
Sathish M
(Management Accountant)
(40581 Points)
Replied 31 January 2016
As per the provisions of section 40A(3), where the payment in cash exceed Rs. 20,000 subjecct to excpetions mentioned in Rule 6DD, it shall be disallowed. TDS @ 10% as per section 194J to be made towards fees for Professional services.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 31 January 2016
hospital expenses paid for employee are not part of P/L account but would get debited as part of salary to employee, so the treatment would go at par with salary account clubbed.
CAclubindia
