TDS on Composit fees

A hospital paid to an Eye Surgen Rs.60000 (Rs.35000 Fees+Rs.25000 cost of Lence used from self stock purchased in his name)

My query is that TDS is to be deducted on Rs.35000 or RS.60000.
Replies (3)
Quick Summary
This discussion clarifies the deduction of Tax Deducted at Source (TDS) on composite fees paid to medical professionals, specifically an eye surgeon. If the invoice clearly separates the surgeon's fees (Rs. 35,000) from the cost of lenses supplied from their own stock (Rs. 25,000), TDS is only applicable to the surgeon's fees. However, if the invoice lumps both service and material costs together as a single 'Eye Surgeon Fee' of Rs. 60,000, TDS must be deducted on the entire amount.

On 35000
1 if separately mention on bill 1 is surgen Fee and 2 is Eye lence then you will deduct TDS only on Fee .

2 if you mention Eye surgen Fee Rs.60000 (both service and material include then you will deduct tds on hole amount)

In the case you mentioned, where a hospital paid Rs. 60,000 to an Eye Surgeon (Rs. 35,000 as fees and Rs. 25,000 as the cost of lens used from self stock purchased in his name), the TDS provisions would apply as follows if fees and cost cost lens mentioned separately in the invoice received from doctor.

  1. Fees: TDS would be applicable on the fees portion of Rs. 35,000 paid to the Eye Surgeon. The hospital would need to deduct TDS from this amount based on the applicable rate and deposit it to the government as per the TDS provisions.

  2. Cost of Lens: TDS is not applicable to the cost of lens used from self stock purchased in the Eye Surgeon's name. TDS provisions generally apply to specific types of payments specified under the Income Tax Act, and the cost of lens used from self stock would not typically fall under those specified categories.

Therefore, in this scenario, TDS would be deducted only on the fees portion of Rs. 35,000 paid to the Eye Surgeon, and not on the total payment of Rs. 60,000.

If not mentioned separately that you need to TDS on whole Invoice value i.e. on Rs. 60,000

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