TDS on payments to Hospitals etc

[sreekumar c]

Dear Sir

Do a company require to follow the TDS provisions for payments to hospital etc for treatment of staff or meeting the hospitalisation expenses in case of accidents etc.. Whether the same will come under 194J. Also please inform whether the provisions of Section 194J will be applicable to charitable trusts registered under Sec 12AB, who makes payments to hospitals etc as relief to poor. The query is raised since as per Circular 5/2002 dated 30.07.22 TDS is applicable. Please advise the position of law in this regard. Thanks

AI Summary

Clarification Sought on TDS Applicability Under Section 194J for Payments to Hospitals by Companies and Charitable Trusts A participant in a discussion forum inquired about the applicability of Tax Deducted at Source (TDS) provisions under Section 194J of the Income Tax Act for payments made by companies to hospitals for staff treatment or hospitalization expenses due to accidents. Additionally, the query sought clarification on whether these provisions apply to charitable trusts registered under Section 12AB when they make payments to hospitals as relief for the poor. The question references Circular 5/2002, which indicates TDS applicability, and requests guidance on the legal position.