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tds u/s 194J

Preeti Gautam (Manager (F&A)) (49 Points)

18 August 2009

TDS u/s 194J has to deducted on payments to hospitals. But TDS has to deducted on what amount? Total bill value or on the Professional services of medical practitioners i.e. surgeon fees & consulation fees etc.

For Example total medical bill is of Rs 1,00,000/- which comprises of Rs 25000/- surgeons fees & Rs 5000/- Consultation fees. Then TDS has to deducted on Rs 1,00,000/- or Rs 30,000/- @ 11.33%?

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12 Replies

CA Kingsley (Audit Manager) (470 Points)
Replied 18 August 2009

TDS shall be deducted on Entire 1 lac

CA Abhiram Bharat. (Assistant Manager Taxation) (508 Points)
Replied 18 August 2009

sec194j species deduction of tax (tds) on payment for professional services. so it is clear dt entire rs.100000 shall be covered.

Dilip (Working) (408 Points)
Replied 18 August 2009

If you want it should be deduct on only Rs. 30,000/- then ask them for providing separated bill. otherwise u have to pay on whole amount.

Ajay Puri (AD(M)) (69 Points)
Replied 19 August 2009

Originally posted by :Preeti Gautam
"	TDS u/s 194J has to deducted on payments to hospitals. But TDS has to deducted on what amount? Total bill value or on the Professional services of medical practitioners i.e. surgeon fees & consulation fees etc. For Example total medical bill is of Rs 1,00,000/- which comprises of Rs 25000/- surgeons fees & Rs 5000/- Consultation fees. Then TDS has to deducted on Rs 1,00,000/- or Rs 30,000/- @ 11.33%?	"

TDS is to be deducted on the whole value of contract/bill.

Preeti Gautam (Manager (F&A)) (49 Points)
Replied 19 August 2009

Section 194J covers fees for professional notified u/s 44AA . So For Example as the hospital bill which comprises of Bed charges, Medicines, procedures, Nursing charges & consultation chargesof doctors, & surgeons fees etc. Whether complete bill amount will attract TDS u/s 194J? How are bed charges, medicines, OT theatre Charges are covered under u/s 194J? If TDS has to be deducted on full bill amount? Can anybody calrify this point?

CA Kingsley (Audit Manager) (470 Points)
Replied 19 August 2009

If your bill includes medicines, dont deduct tax on that portion. But other charges are under 194J only including bed charges & nursing charges.

CA Kingsley (Audit Manager) (470 Points)
Replied 19 August 2009

Instead you do one thing. you give us break up of the total hospital bill. We will tell you how much to deduct tax.

Preeti Gautam (Manager (F&A)) (49 Points)
Replied 19 August 2009

medical bill comprises of following heads:

1. Bed Charges 2. Admission Charges 3. Services/Nursing Charges 4. Consultation 5. Treatment Procedures 6. Pharmacy Drugs 7. OT Consumable & Drugs 8. Operation Theatre 9. Labaratory 10 Emergency Procedures 11.Cardiology etc 12. Surgeon Fees 13 Anesthetian Fees 14 misc .

Kindly clarify on which items TDS has to be deducted?