TDS on payment by Hospitals to Consultant Doctors to be deducted U/S 194J:
M/s. Kovai Medical Centre and Hospital Limited, (ITA No.: 1004/Chny/2022)
- The respondent/assessee company is running a multispecialty hospital and providing health care service.
- A survey was conducted on the business premises of the assessee. During the course of the survey, it was noticed that TDS has been deducted from the remuneration paid to the consultant doctors U/S 194 J and not U/S 192 ie salaries.
- The assessee contended that the doctors appointed as consultant doctors have been paid fixed monthly remuneration with variable components depending on the number of patients treated. The doctors are not entitled to any statutory benefits and also point to the absence of an employer-and-employee relationship ie the doctors were entitled to conduct their private practice as well.
ITAT Chennai held as below:
- In order to treat remuneration paid to consultant doctors under the head salary, there should be employer an employee relationship.
- But, there is an absence of employer and employee relationships.
- Therefore, the appeal of the revenue is dismissed.
The copy of the order is as under: