Outsourcing of the Services - whether the Tax is to be deducted u/s 194-C (Contracts) or u/s 194-J

[MOHAN S]

One of our clients is a Company running a Hospital. They refer( Outsource) the Laboratory and Clinical Diagnosis Services to another Private Limited Company. When payment is being made by the Hospital whether the Tax is to be deducted u/s 194C (Contracts) or u/s 194J Professional Services. In my opinion, as this is basically a contract only 194C is applicable. Can any one give their views?

AI Summary

Fees for technical services: TDS required on outsourced laboratory and clinical diagnostic services provided by third parties.
Where outsourced laboratory and clinical diagnostic services involve scientific analysis and the provision of expert reports or specialised technical inputs, they fall within the scope of fees for technical services and TDS should be applied under the provisions governing technical/professional fees rather than under contract payment provisions.