TDS ON PAYMENT TO HOSPITAL ON BEHALF OF EMPLOYEE

[abbas mukhi]

Sir,

We are making payment to hospitals (approved by CIT and non approved) for medical treatment/ surgery of our employees.

We have also our company's hospital but in major case we refer the case to above hospitals.Reference letter is issued by our company in this regard.

(1) Some times we are making payments directly to hospitals and (2) some times employees are paying to hospitals and we are reimbursing to employee

in the first case bills from hospitals are in our company's name and in second case bills are in the name of employee.

We have started to deduct TDS in (1) having reliance on Dedicated Health Care Services TPA (India) Pvt. Ltd. and others 2010 (5) TMI 98 - BOMBAY HIGH COURT and THE MEDI ASSIST INDIA TPA (P) LTD. Versus DCIT (TDS), CIT (TDS), CBDT & UOI- 2009 (8) TMI 85 - KARNATAKA HIGH COURT

but we are still in confusion regarding (2)....

Please guide experts....

AI Summary

Company Seeks Clarity on TDS for Employee Medical Reimbursements; Expert Says No TDS on Pure Reimbursements A company is seeking guidance on tax deduction at source (TDS) related to payments made to hospitals for employee medical treatments. Payments are either made directly to hospitals or reimbursed to employees. In the first scenario, hospital bills are in the company's name, and TDS is deducted based on legal precedents. However, there is confusion about TDS applicability in the second scenario, where bills are in the employee's name. An expert suggests that TDS is not applicable for pure reimbursements as the transaction is between the employee and the hospital, with the company merely reimbursing the employee.