Query on 194 O and 194JB

In this case, Section 194J will be applicable for TDS on Professional Fees paid to medical practitioners. The company should deduct TDS under Section 194J when paying fees to these professionals.

Section 194O and 194JB cover different transaction types so they do not apply to the same payment at the same time. Under 194O, the e-commerce operator deducts TDS at 1% on gross amounts credited to sellers before payment, and this reflects in your Form 26-AS; if you are the seller, the deduction obligation is on the platform. For e-commerce sellers on platforms like Blinkit or Swiggy Instamart, the GST and TDS obligations across platforms are explained in this [quick commerce sellers compliance guide](https://taxgarden.in/blog/gst-compliance-quick-commerce-sellers-blinkit-swiggy-zepto-2026).

Section 194O and 194JB are often confused but cover completely different situations.

Section 194O applies to e-commerce operators (platforms like Amazon, Flipkart) who deduct TDS at 0.1% on gross sales credited to the seller. The deduction obligation is on the platform, not the seller.

Section 194JB is not an independent section in the Income Tax Act. It is a sub-code used in e-TDS return filing for fees for technical services under Section 194J where the rate is 2%. The full Section 194J covers both professional fees (10%) and technical service fees (2%), and Form 26Q requires them to be reported separately using sub-codes 4JA (professional) and 4JB (technical).

Key question to ask: Is the payment to a platform for facilitating a sale (194O) or a direct payment to a person for professional or technical work (194J)? These do not overlap and both cannot apply to the same transaction.

See this [Section 194O TDS guide for e-commerce](https://taxgarden.in/blog/tds-on-ecommerce-payments-section-194o-393-guide-india-fy-2026-27) for the threshold limits and filing process.

In the present case, generally Section 194J (professional fees) would be the relevant section as against Section 194-O.

Reason:

-  The section 194-O is applicable where the e-commerce operator has entered into a transaction with the seller of goods and the provision of services or with the provider of services through his digital mode. And it collected consideration on behalf of the participant.
-   In cases where the digital mode is primarily using doctors/medical professionals to providing services on its digital mode and is paying doctors for their professional services, the payment to doctors retain its character as payment for professional fees.
-  Medical services has been considered to be a type of professional services.

The commonly known section as 194JB is not a distinct section under Income tax act but is only the reporting code for 194J. Which is being used for TDS Return purpose only to denote payments subject to a higher rate of professional services TDS.

Hence, wherever the company pays for medical/consultation services to doctors for providing their services to patients, without there being any employee-employer relationship, TDS on professional fees shall ordinarily be deducted under Section 194J.

However, the final taxation treatment may be based upon the contract between the intermediary, the doctors and the patients. Where the role of the intermediary is only to provide the services as mentioned in section 194-O, if all the conditions of 194-O is being satisfied, the detail contract may require analysis.