Income tax or service tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 Hello,

I am working in a factory. Our company appointed some doctors (not private practitioner) for medical check-up of every employee in the factory. In consideration to this on of the doctor of the team raised a bill in his letter head an amount of Rs.2,20,000/-.

In this I would like to know whether

1. Is this a consultancy service?

2. Can the payment of this would attract the income tax or service tax?

Please help me out on this.

Regards

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)

03 July 2012 Doctors provided services to your company.in this they will charged service tax in their bills.

you have to make payment to doctors after deducting TDS U/S 194J @ 10%

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

03 July 2012 It is not a consultancy service as company is not availing any consultancy from the doctros.
Payment made towards medical check up of the emloyees is debited to Employee welfare accout.
Service tax is charged by the doctors on their bill only if the taxable service provided by them individually does not exceed Rs. 10 lakhs in the current year or previous year.
The comopany is not eligible for cenvat credit of the service tax paid on medical check service.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)

03 July 2012 It is to be assessed by Doctors himself that services rendered by himself is taxable service or not.& also about taxable service provided by him whether exceed Rs 10 lacs or not.

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 But, this is one time. The bill does not include any service tax.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

03 July 2012 You will have to deduct tds @10% u/s 194J on Rs. 220000.
You are not concern with service tax on bill.

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