APPLICABILITY OF TDS ON PAYMENT TO PATHOLOGY LAB

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MY CLIENT PROVIDE SERVICES OF PATHOLOGY LAB TO ITS DIFFERENT INSTITUTION LIKE HOSPITALS, NURSING HOME ETC., ON MAKING PAYMENT BY THE PARTY - WHETHER TDS ON ITS WILL COVER UNDER section 194C OR 194J, FURTHER THE PATHOLOGY LAB ALSO TAKING SERVICES OF LAB TEST FROM DIFFERENT LAB - ITS ALSO PAID FOR THE TEST.... TDS U/S. 194c OR 194J PLEASE ADVICE

AI Summary

Debate on whether TDS for pathology lab payments falls under Section 194C or Section 194J of the Income Tax Act. A discussion was initiated regarding the applicability of Tax Deducted at Source (TDS) on payments to pathology labs, specifically whether these should fall under Section 194C or 194J of the Income Tax Act. One respondent suggested that if a contract involves intellectual skill, it should be covered under Section 194J; otherwise, Section 194C applies. Another respondent argued that since pathology reports require a qualified pathologist's signature, they should be considered under Section 194J, aligning with the broader medical profession. Both respondents shared their interpretations based on their professional experiences.