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Payment to a hospital: whether Fees for Technical services

TDS / TCS 690 views 2 replies

Hospital A and Hospital B (both being registered companies) entered in a contract whereby Hospital A will provide its staff for carrying out certain procedures to Hospital B. The staff so provided will include Doctors, Nurses and other Technical staff.

What will be the nature of payment that Hospital B will be making to Hospital A?

Since the receipient is a Company, it cannot be professional fee, as courts have held that a company cannot be in profession. But can this be qualified as Fees for Technical Services?

Replies (2)

hello

1st of all it is liable to charge service tax

supply of manpower is covered under contract u/s 194c

Yashpreet,

 

Section 194C has used he word "Labour" not manpower. And doctors and other staff with some technical skills cant be called as labour.


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