06 August 2011
I wish to know whether Applicability of provisions under Section 194J of Income Tax Act'61 in the case of transactions by the Third Party Administrators (TPAs) with Hospitals whether private or government as per circular No. 8/2009.
More particularly I need to know where payment made by TPAs to government hospital is exempted from TDS provisions or not?
06 August 2011
Payment to government, RBI, Corporations established by or under Central act whose income is exempt, or a mutual Fund are exempt form TDS provisions. Pl Refer Section 196.
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I have gone through the circular as referred by you and it is quite clear from it that deduction of tax at source is necessarily required.