APPLICABILITY OF TDS ON PAYMENT TO PATHOLOGY LAB

[SUNIL AGRAWAL]

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

[Dhirendra Srivastava]

Dear Sunil Ji

There is very thin line of distinction between TDS u/s 194C and 194J since ultimately at the end of the day nomenclature of every agreement is a Contract.

What rule i follow in such situation is that if the contract requires the exercise of Intellectual skill then it will get covered under section 194J otherwise Section 194C.

This is my view i am waiting for other views as well

Rahul Srivastava

[Taranjeet Singh]

Dear Sunil ji,

A lab pathology report is valid only if a qualified pathlogist signs,  pathology being a part of wider profession of "doctor" therefore, I am of the opinion that 194J should apply, infact with my clients, we are following this logic.

Taranjeet Singh practising at chandigarh.

AI Summary

TDS classification for pathology services: professional-skill diagnostic services attract TDS under professional-services rules, routine contracts do not. Payments to pathology laboratories that entail the exercise of professional or intellectual skill-such as diagnostic reports certified by a qualified pathologist-should be characterised as professional services for TDS purposes, whereas payments for routine supply or performance of services without specialised professional expertise should be characterised as contractual services.