TDS on Payment to Health Care staff ( Nurse) u/s 194J

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This query is : Resolved

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This discussion centres on whether a healthcare platform, acting as an intermediary between patients and nurses, needs to deduct Tax Deducted at Source (TDS) under Section 194J on payments to nursing staff. The platform clarifies that nurses are not employees but independent contractors. It explores alternatives to the 10% TDS under 194J, questioning eligibility for Advance Ruling (AAR) and considering Section 194O for e-commerce operators, which has a lower TDS rate and a higher threshold for applicability. The consensus leans towards Section 194O being more relevant if the platform qualifies as an e-commerce operator, potentially exempting them from 194J if certain conditions are met.

sandeep maramreddy

sandeep maramreddy (Querist)

28 April 2022 One of my clients is operating online Health care Service, where we Acts as platform between patients and Nurses.
Structure of Operations:
Patient Books a Service through our Application, to which Nurse in Nearby Area Accept request and Render them Service visiting Patient's Home.

Here Nursing Staff are not our Employees, they just Accept offer from Patient if they are interested to Perform service.
Qualification of Nursing Staff : 10th pass/ fail to MSC Nursing.

Considering Above facts, Should we Make TDS u/s 194J ( Medical Professionals).

Please Provide me Alternatives Available for not make TDS @10%.

Can i go for AAR, i am i Eligible for that ? ours is a Startup company not started operations widely yet.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 April 2022 This will fall under e commerce operator.

E-Commerce operators should deduct TDS @1% at the time of credit of the amount of sale of goods, services, or both to the account of an e-commerce participant or at the time of making payment to an e-Commerce participant by any other mode, whichever is earlier.

sandeep maramreddy

sandeep maramreddy (Querist)

13 May 2022 Thank soo much for your Valuable Response sir, it's Definitely useful for us . But, Provision says to Make TDS when Value of Goods/Services supplied exceeds 5Lakh in a Financial Year in case of Individual/ HUF. but in our company payment to Nurse in FY will not amount to 5,00,000.
can i Deduct TDS u/s 194o @ 1% ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 May 2022 No TDS applicable in such a case.

sandeep maramreddy

sandeep maramreddy (Querist)

13 May 2022 So you mean No TDS under section 195O, but TDS applicable u/s 194J ?
What if we make TDS u/s 194O even Limit not exceeds 5Lakh ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 May 2022 194J not applicable as you are E commerce operator.
Not a problem.

sandeep maramreddy

sandeep maramreddy (Querist)

14 May 2022 Ok sir , Thank you so much