TDS on hospital service

[velayutham panchatcharam]

I am in SEZ. We have credit account with private hospital for our employee treatment. When ever accident happen we will send our employee to private hospital and they will send bill every month. My question is whether TDS is applicabel for this service. Please note that hospital is charging service tax.

AI Summary

Debate on TDS applicability under Section 194J for hospital payments: Professional fees or facilities? Clarifications sought. A query was raised regarding the applicability of Tax Deducted at Source (TDS) on payments made to a private hospital for employee treatment under Section 194J, especially since the hospital charges service tax. One respondent argued that TDS is applicable, referencing specific legal cases. Another respondent contested this, suggesting that hospitals provide facilities rather than professional services, questioning the classification of various hospital charges as professional fees. A third participant, working as a TPA coordinator, questioned TDS deductions on hospital bills, including medicines already subject to VAT, seeking clarification on the correct procedure.