TDS 194C .

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This discussion examines whether central government hospitals are required to deduct Tax Deducted at Source (TDS) on payments made to medicine suppliers under Section 194Q. While the section applies if certain conditions are met, the Central Government has the authority to exempt specific entities. However, as of the discussion date, no exemption list has been published, meaning hospitals likely fall under the purview of this section.

Rohit S

Rohit S (Querist)

03 November 2021 Whether central govt hospitals deducted TDS on payment made to contractor for supply of medicine

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

03 November 2021 As per sec. 194Q, which is applicable from 01.07.2021, if the conditions as per the section gets satisfied, the hospitals need to deduct TDS.

Rohit S

Rohit S (Querist)

03 November 2021 Sir central govt exempt from 194q

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

03 November 2021 As per circular issued by CBDT ... Circular No. 13 of 2021 dated 30.06.2021, ......
......
"2. Buyer is defined to be person whose total sales or gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the purchase of good is carried out. Central Government has been authorized to specify by notification in the Official Gazette, person who would not be considered as buyer for the purposes of this section.." .....

But as on date no exemption list issued. So, it is applicable to the hospitals also.

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