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TDS on Medical Exp

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This query is : Resolved

visu iyer (Querist)

01 February 2009 Pl. clarify..
Amount paid by employer for a medical treatment of employee to a HOSPITAL.

Will the amount paid to HOSPITAL is to be covered for TDS u/s.194J @ 11.3% (including Surcharge)

There are two contraversial opinion on this..

I say YES it is to be..
and
Tax liability on the Employee..

Experts .. What do u say..
pl. comment.

God bless U

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

01 February 2009 It depends on how you treat the expenses.

If your comany is having memorandum of understanding or tie up with any hospita to treat the employees then tds will be applied and tds has to be deducted.

In case of emergeny the company is paying and recovering the same from the salary of the employee then tds is not applicable.

If both are not there and the company is paying case to case basis if professional fees excluding other charges exceeds 20000 and bill is in the name of the company then you have to deduct tds.

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