very urgent Audit query tds related

Fees paid to doctor comes under section 194J. if there is a provision to paid commission for refereal of patients to doctors then TDS will be be deducted u/s 194H.

regards,

ratan

If refered by inhouse doctor, same will be continue to liable u/s 194J.

regards,

ratan

hi Sonia,

Your query is Referral fees paid to doctor.

i take up second case, where doctor is inhouse (on salary) then any amount paid to employee, whether it be commission then included in salary.If hospital is paying professional fees to inhouse doctor then such referral fee would also form part of seciton 194 J.Because , such referral is paid to him Only Because that Doctor is referring the patient and he is covered in professional category.

Further , your first case, Referrel fees paid to outside doctor, i would say covered under section 194J.Being a Doctor(Professional) can only do such Referral services..So deduct  tds U/S 194 j.

Hope you are clear.

Rajesh

In section 194J it was mentioned as "any sum paid/credited by way of fees for professional Services"

Meaning of Professional Services is "services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section44A or of this section"

So this Referral service is also rendered in the course of Carrying on his/her Profession. Hence TDS has to be deducted u/s 194J.

Originally posted by : CA.Sonia
	In a hosptial a fees is paid to the doctor (outsider) who has patient reffered  patient to the hospital? Amount paid to them will attract tds under 194j or 194H?i.e commission or professional. 2. If the patient is reffered by inhouse doctor ? What will attract 194H OR 194I?

 Solution :  Doctor is outsider. He has referred a patient to the hospital.For doing this wonderfull task he is given some amount. This amount should be treated as commission .Because the argument for is that he is a doctor and proffessional service by him would be treating patients and not referring patients.Patients are also referred by some executives too. We pay them also commission but not professional fee for their service. So one cannot reclassify two types of transactions on the basis of parties involved. But they should be classified on the basis of actual transaction.

For q2 also the answer remains the same.

My answer would differ only if the doctor treats a patient.He would be rendering proffessional service then.