Tds query- very confusing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 Dear All experts

Pl. look into the query:

ABC (Firm) is rendering medical services to a Hospital on account of performing some Tests.

Abc firm is raising monthly invoices to him as under:

Gross-100
fee-60 (Retained by Hospital)
Net-40 (Hospital will make payment after deducting TDS @10%) to ABC firm.

My question is that whether our client ABC firm is liable to deduct TDS under sec 194J on amount of Rs. 60/- (as mentioned above)???

Pl. resolve the query.
Thanks

CA Parul Saxena

CA Parul Saxena (Expert)
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13 November 2013 Hospital is making payment to ABC firm then hospital will deduct tds and not the firm.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 Thanks Sir

can u pls. explain it further bcoz i am very confused about this query on the point of 60/-(retained by Hospital as it is their income only)

Pl. xplain it further for me....i shall be highly thankful to u.

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 November 2013 two parts:

1. If it was the income of Hospital, then why the invoice was Rs 100?? You just send the invoice for Rs 40. I believe it is a case of contract testing.

2. In any case, TDS shall on Rs 40 and it is the hospital who is liable to deduct TDS on the same.

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