Ours is a Sole proprietorship organization and we entered into contract with one MNC for providing doctors and paramedics for their Occupational Health Centers. They are deducting TDS at 10% under 194J on the total invoice.
I am not bifurcating the bill into Salaries of Medical staff and Service charges due to some practical difficulties. Is it a right practice to deduct TDS on the total amount? Is it correct to deduct it under 194J instead of 194C?
I am only providing healthcare services through my staff by paying them salaries. I am not a professional and I think 194J is not applicable to me. We are not claiming Service Tax from the Company as our services come under Healthcare services.
My point is that as ours is a service contract to provide these healthcare services through qualified personnel, it should come under 194C as per Circular: No. 681, dated 8-3-1994 issued by IT Department and as per definition we are providing health care services which is in the negative list of Service Tax.
Now my question is - Is it right to request them to deduct the TDS under 194C?
CAclubindia
