Clarification of Circular No.-8/2009,ralating to sec.194J

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Biplab (Querist)
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14 January 2010 In case of Mediclaim d insurence company pays for Doctors fee, medicine & bed charges by a single cheque after deducting TDS U/S 194J to d Nurshing Home. Now when d Nurshing Home makes payment to d medicine supplier, outside doctors,how d TDS credit will b allocated? Bcos a single TDS cirtificate will b issued by d mediclaim company in favour of d Nurshing Home after deducting TDS at d rate specified u/s 194J. Will d Nurshing Home again deduct TDS while making/crediting payment to supplier/doctors at d specified rate???? Plz advice.

veena

veena (Expert)
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14 January 2010 Nursing home is a separate entity. so TDS deducted for it can be claimed only in its name and hence no question of allocation of credit. If the entity is company or it has a tax audit in previous year it has to make TDS compliance while making payment. In case of purchase of medicines no TDS. In case of professional fees TDS 10% if they are crossing Rs.20000/- in the year.Others views are also invited

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