TDS on professional medical services: TPAs must deduct tax at source when paying hospitals for insured claims. Payments by Third Party Administrators to hospitals for medical services are treated as fees for professional services and therefore subject to withholding under Section 194J; TPAs are liable to deduct tax at source when crediting or paying such amounts. Failure to deduct renders TPAs deemed assessee in default with associated interest and penalty exposure. Recovery proceedings under the deeming provision will not be initiated after six years from the end of the relevant financial year, and tax demands may be waived if the hospital shows tax has been paid supported by an auditor's certificate, though interest and penalty consequences remain until payment.