Prof fee's of doctors vs remuneration

Query relates to a Partnership firm Hospital in which 2 of the partners are practicing surgeons.

Is the professional fee's (consultation charges and surgeon charges) to be collected from patients and paid to the doctor partner's quantiify as "remuneration" under Section 40(b) and do the limits mentioned in 40b(v) apply?

Note that the "prof fee's" is not being paid for services renderd to the firm, but to the patient and the firm is only collecting it and handing it over to the doctors - for accountability and logistic reasons.

Replies (3)

According to me, the services will not be a remuneration paid by a firm.

The firm is only actinga as a conduit for collecting the fees from the patients and handing it to the Doctors (this is the normal practice followed by hospitals and clinics)

regards

 

thanks,

in which case, i suppose that there is no need to mention it in the firm's partnership deed as given in Sec 40b (iii). Is my understanding right?

regards

I feel that this arrangement should be clearly mentioned in the deed. Also, the amount collected by the hospital (firm) on behalf of the partner will form the professional receipts of the Doctor partner and not that of the firm. Care should be taken that these amounts are always paid by cheque and taxed in partner's returns, to avoid future problems.

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