TDS u/s.194J

TDS is not to be deducted, as payment is made to hospital, if the payment is made to any private clinic, then the same shall attract TDS

TDS will be deductible at 10% u/s 194J since the services rendered by the hospital is service in course of medical profession and is professional services liable to TDS....

Please see this link.........

https://www.caclubindia.com/forum/tds-71152.asp

Obvious that TDS has to be deducted u/s 194 J...... No exemptions for TDS other than the limits prescribed and if the other conditions are satisfied it has to be deducted..............

for company its just a staff welfare....no need to deduct tds. Rs. 10,00,000 is treated as perquisite in the hands of the employee.

Any professional, now will you please suggest that whethere TDS is to be deducted or not ?

Although it is a perquisite but the nature of the expense is attractable to TDS and hence tax is to be deducted only on the professional and consultancy charges and not on the total amount of the bill.

The servises provided by the Hospital people is professional in nature. And the amount is expenditure in the hands of company. Hospitality servises are covered under professional servises. Hence the payment is Liabe to tax and deduct the Tax U/s 194J.

Company has a separate identity. It is a separate person.  Hospital is not taking care of the health of the company but only its employee. It is medical expenditure for employee not for Company. For Company, its just staff welfare expenses and company is not getting any professional services as like Auditors to deduct TDS from its payments to hospitals. It is only employee who is availing professional service.