https://www.taxtmi.com/caselaws?id=76302 The court held that Third Party Administrators (TPAs) are required to deduct tax at source under Section 194J when making payments to hospitals for medical services. The court upheld the validity of Circular 8/2009 issued by the Central Board of Direct Taxes (CBDT) to the extent that it aligns with the interpretation of Section 194J. However, the court found fault with the circular's imposition of automatic penalties for non-deduction of tax, stating that it interferes with the discretion of tax authorities. The court clarified that the definition of "professional services" under Section 194J includes medical services provided by hospitals and emphasized that the CBDT cannot issue directions that impede the quasi-judicial discretion of tax authorities. en-us Mon, 03 May 2010 00:00:00 +0530 Tue, 21 Mar 2017 11:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76302 The court held that Third Party Administrators (TPAs) are required to deduct tax at source under Section 194J when making payments to hospitals for medical services. The court upheld the validity of Circular 8/2009 issued by the Central Board of Direct Taxes (CBDT) to the extent that it aligns with the interpretation of Section 194J. However, the court found fault with the circular's imposition of automatic penalties for non-deduction of tax, stating that it interferes with the discretion of tax authorities. The court clarified that the definition of "professional services" under Section 194J includes medical services provided by hospitals and emphasized that the CBDT cannot issue directions that impede the quasi-judicial discretion of tax authorities. Case-Laws Income Tax Mon, 03 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76302