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TMI BlogApplicability of provisions under Section 194J of Income Tax Act'61 in the case of transactions by the Third Party Administrators (TPAs) with Hospitals etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... i , dated the 24th November, 2009 Sub: Applicability of provisions under Section 194J of Income Tax Act'61 in the case of transactions by the Third Party Administrators (TPAs) with Hospitals etc. A number of representations have been received from various stakeholders regarding applicability of provisions under Section 194J of Income Tax Act'61 on payments made by Third Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per Explanation (a) to 194J "professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession etc..'. 3. The services rendered by hospitals to various patients are primarily medical services and, therefore, provisions of 194J are applicable on payments made by TPAs to hospitals etc. Further for invoking provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and penalty under Section 271C . 4. Considering the facts and circumstances of the class of cases of TPAs and insurance companies, the Board has decided that no proceedings u/s 201 may be initiated after the expiry of six years from the end of financial year in which such payment have been made without deducting tax at source etc by the TPAs. The Board is also of the view that tax demand ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strict compliance. Hindi version will follow (Ansuman Pattnaik) Director (Budget) Copy to:- 1. The Chairman, Members and other offices in CBDT of the rank of Under Secretary and above. 2. All Chief Commissioners and Director Generals of Income Tax. 3. 100 copies to DIT (PR, PP OL) for printing in the quarterly tax bulletin and for circulation as per their usual mailing list. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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