https://www.taxtmi.com/circulars?id=7823 Payments by Third Party Administrators to hospitals for medical services are treated as fees for professional services and therefore subject to withholding under Section 194J; TPAs are liable to deduct tax at source when crediting or paying such amounts. Failure to deduct renders TPAs deemed assessee in default with associated interest and penalty exposure. Recovery proceedings under the deeming provision will not be initiated after six years from the end of the relevant financial year, and tax demands may be waived if the hospital shows tax has been paid supported by an auditor's certificate, though interest and penalty consequences remain until payment. en-us Tue, 24 Nov 2009 00:00:00 +0530 Wed, 25 Nov 2009 09:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=7823 Payments by Third Party Administrators to hospitals for medical services are treated as fees for professional services and therefore subject to withholding under Section 194J; TPAs are liable to deduct tax at source when crediting or paying such amounts. Failure to deduct renders TPAs deemed assessee in default with associated interest and penalty exposure. Recovery proceedings under the deeming provision will not be initiated after six years from the end of the relevant financial year, and tax demands may be waived if the hospital shows tax has been paid supported by an auditor's certificate, though interest and penalty consequences remain until payment. Circulars Income Tax Tue, 24 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/circulars?id=7823