recovery under 194c or 194j

[Guest]

sir,

The Govt has issued orders permitting to engage a person as Medical Officer on contract basis at a consolidated pay of rs 9300.00 per month for a period of one year... and we entered into an agreement with the doctor.In this case I would like to know the rule position whether to apply Section 194 C or 194J in recovering TDS (Income Tax).

Chakravarthy S.N.

[Jagadeesh Tiruveedula]

194J

[DEV KUMAR KOTHARI]

As a medical officer, Doctor  seems to be an employee (may be part time employee). Therefore, proper head is 'salary' and not payment to contractor or professional.

If his engagement is in a professional capacity without relationship of employer - employee, then the payment will be in nature of 'professional fees'/

AI Summary

Professional fees vs contractor classification: TDS depends on whether the medical officer is engaged professionally or treated as salary. Query whether TDS should be deducted under Section 194C or 194J for a Medical Officer engaged on a one year contract at a consolidated monthly pay. One reply advises treatment as professional fees under Section 194J. Another reply indicates the person may be an employee, in which case payments should be characterised as salary rather than contractor or professional fees; if there is no employer employee relationship, the payment would be professional fees.