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TDS u/s.194J

Sr. Officer- Accounts & Audit

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)?


Manager Finance & Accounts

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



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....


Consultancy fees, surgery etc, covered under professional services and hence TDS are deducted u/s 194J. For medicines and pharmaceuticals are supply of goods and on the same TDS is not required to deduct. If separate bills are raised.

Please see this link.........

CS Final

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..............


for company its just a staff need to deduct tds. Rs. 10,00,000 is treated as perquisite in the hands of the employee.

Manager Finance & Accounts

Any professional, now will you please suggest that whethere TDS is to be deducted or not ?


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.

Chartered Accountant

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.



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