Tds on reimbursement of medical bill to hospitals
This query is : Resolved
29 March 2012
We have made the payment to Hospital who was done the medical check-up to our employees. Please advice, whether should we charge TDS? If so, in which section it comes under?
Regards,
Regards,
29 March 2012
Health care service is liable for service tax as health care/ health check up service.
The service provided is in the nature of professional service, since medical services are considered as professional services, it would be liable for TDS u/s 194J @ 10%.
The service provided is in the nature of professional service, since medical services are considered as professional services, it would be liable for TDS u/s 194J @ 10%.
29 March 2012
dear sir
the bills not only contain professional services but also medicine costs, rent of room , cost of tests and other expenses
what will be the treatment in such a case ?
the bills not only contain professional services but also medicine costs, rent of room , cost of tests and other expenses
what will be the treatment in such a case ?
29 March 2012
Dear Rishabh,
Rendering of any professional service requires consumption of some goods, even a technician providing technical services uses some parts/machine to provide such service.
when service tax department can charge service tax on the entire value of health check uo service then why not the IT dept will do!!
These costs are required to be incurrred while providing such dervice.
testing cost, cost of room, medicines all these are inbuilt and are part of the value of the service.
Rendering of any professional service requires consumption of some goods, even a technician providing technical services uses some parts/machine to provide such service.
when service tax department can charge service tax on the entire value of health check uo service then why not the IT dept will do!!
These costs are required to be incurrred while providing such dervice.
testing cost, cost of room, medicines all these are inbuilt and are part of the value of the service.
29 March 2012
one more thing i would like to know about is that whether providing health check up and treatment both are considered as the same
i mean in tax point of view whether treatment also attracts 194j only ?
thanks :)
i mean in tax point of view whether treatment also attracts 194j only ?
thanks :)
29 March 2012
Yes, It is liable for TDS u/s 194J only. irrespective of using the nomenclature treatment or check up.
thanks.
thanks.
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29 March 2012
thank u sir
it was relli helpful
it was relli helpful
Message likes :
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