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TDS on hospital service

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..... TDS on hospital service
Query (Issue) Started By: - velayutham panchatcharam Dated:- 3-10-2010 Last Reply Date:- 2-1-2015 Income Tax
Got 3 Replies
Income Tax
I am in SEZ. We have credit account with private hospital for our employee treatment. When ever accident happen we will send our employee to private hospital and they will send bill every month. My question is whether TDS is appl .....

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..... icabel for this service. Please note that hospital is charging service tax. Reply By Surender Gupta: The Reply: TDS on medical services u/s 194J is attracted. You may visit the following cases for more details: Dedicated Health Care Services TPA (India) Pvt. Ltd. and others and THE MEDI ASSIST INDIA TPA (P) LTD. Versus DCIT (TDS), CIT (TDS), CBDT & UOI Reply By DEV KUMAR KOTHARI: The Reply: Wit .....

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..... h reference to the reply given by Shri Surendra Gupta with due respect to the views expressed by courts I feel that the cases were not properly presented before the Courts and as a result courts have rendered wrong judgments which need to be reviewed.. Hospitals are really provider of some facilities and organizer of various services and are not receiving any fees for professional services render .....

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..... ed by them. Fees paid by hospital to doctors is professional fees, but charges paid to hospital including fees for doctors is not in nature of professional fees. Charges of hospitals include reimbursement for services and supplies availed for patient, supplies provided by hospital room and equipment rent etc. How room charge, or OT charges can be regarded as professional fees? How cost of medic .....

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..... ines can be considered professional fees? How reimbursement for fees of doctors, nurses, outsourced services for analysis and investigation etc. can be considered professional fees received by hospital? The judgments are in context of TDS on payments made by TPA, and they will apply to a company who pay for treatment of employees as well. However, as noted above the judgment may be binding, thou .....

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..... gh it may not be correct. When insurance company pays to hospital or Authorised service station, TDS is not required, then why TPA who is merely agent of insurance company is required to deduct tax while paying to hospitals. You may refer an article on this subject on tmi. Reply By jitu parmar: The Reply: sir, i am jitu parmar, working for phoenix hospital as a tpa co-ordinator. my question i .....

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..... s that. we already pay the vat on pharmacy at the time of purchase, but in the case of cashless. the company cut the tds. on whole hospital bill, including medicine, but my CA told me that when you pay the vat on pharmacy, then tpa dont cut the tds on our medicine bill, so kindly explain what is right or what can i do for further refrance.
Discussion Forum - Knowledge Sharing .....

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