Will TDS on payment made to consultant doctors be deducted u/s 194J or 192?

Last updated: 27 November 2021

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This case examines whether Tax Deducted at Source (TDS) on payments made to consultant doctors should be deducted under Section 194J or Section 192 of the Income Tax Act. The High Court of Karnataka considered the nature of the relationship and services provided by the doctors to determine the correct tax provision applicable.

Court :
High Court of Karnatka

Brief :
Whether tribunal was justified holding payments to in house consultant Doctors

Citation :
ITA/676/2016

IN THE HIGH COURT OF KARNATAKA AT BENG ALURU DATED THIS THE 7TH DAY OF OCTOBER, 2021 PRESENT THE HON'BLE MRS.JUSTICE S.SUJATHA AND THE HON'BLE MR. JUSTICE RAVI V. HOSMANI I.T.A.No.676/2016
BETWEEN :
M/s HOSMAT HOSPITAL PRIVATE LTD., REP. BY ITS CHAIRMAN AND MANAGING DIRECTOR, Dr. THOMAS A, CHANDY NO.45, MAGRATH ROAD, BANGALORE-560 025.
AND :
APPELLANT
(BY SRI S.ANNAMALA(, ADV. A/W SRI M.LAVA, ADV.)
THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS), CIRCLE -18(1), 4TH FLOOR, HMT BHAVAN, 59, BELLARY ROAD, BANGALORE-560 032.
(BY SRI K.V.ARAVIND, ADV.)
RESPONDENT
THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 11.08.2016 PASSED IN ITA NOS.572, 575 & 576/BANG/2014, FOR THE ASSESSMENT YEAR 2011-2012, 2012-2013 & 2013-2014. (ANNEXURE-A). PRAYING TO 1. TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW AS STATED ABOVE AND ANSWER THE SAME IN FAVOUR OF THE APPELLANT.

Please find attached the enclosed file for the full judgement.

FAQ :

The appeal concerns whether TDS on payments to consultant doctors should be deducted under Section 194J (fees for professional or technical services) or Section 192 (salaries) of the Income Tax Act.

The case was heard by the High Court of Karnataka.

The appellant is M/s Hosmat Hospital Private Ltd.

The respondent is the Assistant Commissioner of Income Tax (TDS), Circle -18(1).

The appeal covers the assessment years 2011-2012, 2012-2013, and 2013-2014.