RamaKrishnan (Sr. Officer- Accounts & Audit) (123 Points)
04 March 2010
Expert's Advise Pl.
A labour met with an accident and hospitalized. The company incurrs all Medical exp. such as Surgery, Consultancy fee, Room charges, pharmacy etc... which cost to company around Rs. 10 Lakhs.
Is it liable to deduct Tax by the company to the Hospitals (Pvt Ltd)?
-RAM
Vivek Angrish
(Manager Finance & Accounts)
(232 Points)
Replied 04 March 2010
TDS is not to be deducted, as payment is made to hospital, if the payment is made to any private clinic, then the same shall attract TDS
Chintan Shah
(-)
(534 Points)
Replied 04 March 2010
TDS will be deductible at 10% u/s 194J since the services rendered by the hospital is service in course of medical profession and is professional services liable to TDS....
Nilesh
(M)
(23 Points)
Replied 04 March 2010
C.Balaji
(Learner)
(1867 Points)
Replied 04 March 2010
Please see this link.........
https://www.caclubindia.com/forum/tds-71152.asp
CA Priya
(CS Final)
(1049 Points)
Replied 04 March 2010
Obvious that TDS has to be deducted u/s 194 J...... No exemptions for TDS other than the limits prescribed and if the other conditions are satisfied it has to be deducted..............
saranraj
(CA FINAL)
(419 Points)
Replied 04 March 2010
for company its just a staff welfare....no need to deduct tds. Rs. 10,00,000 is treated as perquisite in the hands of the employee.
Vivek Angrish
(Manager Finance & Accounts)
(232 Points)
Replied 05 March 2010
Any professional, now will you please suggest that whethere TDS is to be deducted or not ?
Praveen Kumar Chaubey
(Proprietor)
(45 Points)
Replied 05 March 2010
Although it is a perquisite but the nature of the expense is attractable to TDS and hence tax is to be deducted only on the professional and consultancy charges and not on the total amount of the bill.
CA CMA Amarnath Nuthalapati
(Chartered Accountant)
(81 Points)
Replied 05 March 2010
The servises provided by the Hospital people is professional in nature. And the amount is expenditure in the hands of company. Hospitality servises are covered under professional servises. Hence the payment is Liabe to tax and deduct the Tax U/s 194J.
saranraj
(CA FINAL)
(419 Points)
Replied 05 March 2010
Company has a separate identity. It is a separate person. Hospital is not taking care of the health of the company but only its employee. It is medical expenditure for employee not for Company. For Company, its just staff welfare expenses and company is not getting any professional services as like Auditors to deduct TDS from its payments to hospitals. It is only employee who is availing professional service.
CAclubindia
