Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

TDS on Nursing Home

Sachin Kumar Agrawal (CA - Final) (414 Points)

11 May 2011

DEAR FRNDS PLZ CLARIFY

" IS TDS TO B DEDUCTED ON PAYMENT TO NURSING HOME ? " it is to b further noted that the payer is cover under TAX AUDIT u/s 44AB.

Reply
Follow
Share

15 Replies

(Guest)

which type of payments????????

Sachin Kumar Agrawal (CA - Final) (414 Points)
Replied 11 May 2011

IT IS A COMPOSITE BILL OF NURSING CHARGES, MEDICINE, FEES ETC

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 May 2011

for business or not ?

if its personal treatment then NO TDS, as its capital expenditure

if the expenses are to be posted in P/L account of business as allowable expenses then only TDS applicable u/s 194C, TDS on contract

Sachin Kumar Agrawal (CA - Final) (414 Points)
Replied 11 May 2011

IS 194J WILL ATTRACT OR NOT ??????????????

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 May 2011

Nursing Home is not a professional person,

if the payment is made to any specialist doctor then only 194J

Sachin Kumar Agrawal (CA - Final) (414 Points)
Replied 11 May 2011

BUT THE OWNER OF IT IS A PROFESSIONAL PERSON... i. e. DOCTOR.. it is c & m by d doctor.. den??

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 May 2011

is the payment made towards feel of specialist? then 194J

if gross charges of nursing home then 194C

but above all such expenses are capital expenses, in practical when insurance companies pay to nursing home, they deduct TDS, as for them its expense,

for any individual its not expense, but capital outgo.

Sachin Kumar Agrawal (CA - Final) (414 Points)
Replied 11 May 2011

it is a construction company. den?

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 11 May 2011

It will attract TDS under section 194J as it amounts to Professional or Technical services.

194C shall not at all come into picture as such type of payments are not covered anywhere in the section. So if at all TDS is applicable on this, it is 194J.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 May 2011

@ amol

the query has been clarified as

IT IS A COMPOSITE BILL OF NURSING CHARGES, MEDICINE, FEES ETC

so i assume its accomodation and other services inclusive thats why contract.

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 11 May 2011

194 C covers only following type of payments

1. Works Contracts

2. Supply of Labour

3. Advertising Contracts

4. Broadcasting and telecasting including production of programmes for such broadcasting or telecasting

5. Carriage of goods and passengers by any mode of transport other than railways

6. Catering

7. Manufacturing or supplying a product according to the requirement or specification of customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

So, it wont come under the scope of 194C