07 May 2010
Hi! There is a hospital(registered as partnership firm)of which returns have not been filed for the past 5 assessment years.Now the problem arised is that the hospital used to issue bills to the patients including the amount paid to the visiting doctors without deducting the TDS on amount payable to the said visiting doctors.Now the contention of the IT department is that the hospital is liable to deposit all the TDS amount which should have been deducted from the amount paid to the doctors. Whereas the contention of hospital stands that the amount included in the bill to be paid to doctors are collected by the hospital on behalf of the doctors in good faith(thereby treating it just as a remittance), hence should not be liable for TDS rather doctors themselves should pay taxes on such amount. please suggest how to save TDS.
07 May 2010
In your query. it necessary to provide the agreement relation ship with doctors and the hospital whether employment, Contract and based on that only the TDS liability can be decide.