Tds 192 or 194j

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2012 Ours is a hospital run by trust . We have employed some doctors as well as some technicians on fixed payment. However the term of contract is for one year and renewable after one year. They are eligible for paid leave. However they are not entitled to PF and their payment is shown as stipend in books of accounts. No TDS is deducted. My opinion is that TDS u/s 192 is deductible. Please guide me as early as possible with reference to suitable case law.
If we show the payment as retainership charges and deduct payment u/s194J, will it do?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 June 2012 TDS u/s 192 is only for salary payment. In this case, the remuneration does not amount to salary. Further, employer-employee relationship does not exist.

Accordingly, Section 192 is NOT applicable.

Section 194J is applicable in this case and TDS shall be deducted u/s 194J @ 10%.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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05 June 2012 YES AGREE WITH ABOVE EXPERT..

TDS IS TO BE DEDUCTED U/S 194 J.

THERE IS NO RELATION OF EMPLOYER & EMPLOYEE YOU ARE PAYING STIPEND.

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