TaxTMI 
TaxTMI 
TDS on hospital service
03 Oct 2010 
3 Replies 
30480 Views Asked by
TDS on medical services: whether hospital bills for employee treatment attract withholding hinges on characterisation as professional fees.
Whether TDS under section 194J applies to payments to private hospitals for employee treatment is contested: some rulings treat such payments as fees for technical services attracting withholding, while critics argue hospital bills largely comprise non professional components (room, medicines, consumables, reimbursements) that should not be considered professional fees. The debate also addresses TPA agency status, insurer payment practice, and whether VAT on medicines affects withholding on the medicine component. (AI Summary)
Whether TDS under section 194J applies to payments to private hospitals for employee treatment is contested: some rulings treat such payments as fees for technical services attracting withholding, while critics argue hospital bills largely comprise non professional components (room, medicines, consumables, reimbursements) that should not be considered professional fees. The debate also addresses TPA agency status, insurer payment practice, and whether VAT on medicines affects withholding on the medicine component. (AI Summary)
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.