My client is a doctor, got his own clinic with associated lab. Receipts from clinic as well lab are being collected separately from out-patients. No In-patients. If clinical collections come under professional nature, should lab collections also be treated as professional nature or else business nature. The issue is more serious when doctor earns Rs.9 lakhs from clinic and Rs.2 lakhs from lab. Total amounts to Rs.11 lakhs. If both collections are treated as professional nature then the assessee is liable to tax audit u/s.44AB. But in case if lab collections are eligible to be gropued under business nature, then the assessee is not liable for tax audit.
I opine that doctor do not apply any specialised knowledge in operating lab equipments. He merely prescribes certain tests to be conducted to form an opinion on how to diagnose further and only a lab attender collects sample, study and reports to the doctor. Here the doctor has invested in lab equipments as well operates lab to earn lab collections. Hence lab collections has to grouped under business income.
Please reply your valuable comments on above issue.
Thanks a lot.
CAclubindia
