TaxTMI 
TaxTMI 
2015 (6) TMI 61
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.... the clients of the assessee. The services of Doctors are availed under a contract for services after testing their medical skills. The Doctors are required to provide services round the clock and throughout the year. The assessee accordingly fixes time schedule for various Doctors to ensure their availability at any point of time. The Doctors, according to assessee, provide services independently by exercising their skill sets, experience and expertise. The manner in which they study X-ray, CT scans, etc., and write their analysis and findings is not controlled by the assessee. These are matters in which the individual skill and experience and knowledge of the professional is allowed to be exercised. Based on the above features, the stand of the assessee was that the Doctors are not employees of assessee and that there is no relationship of a master and servant between the assessee and the Doctors, therefore, the provisions of section 192 of the Act are not attracted and assessee is not liable to deduct tax at source on payments made to Doctors considering the payment as "Salary". It is not in dispute before us that the Assessee had deducted tax at source u/s.194J of the Act on th....
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....gnostics Ltd. The assessee company engaged skilled people as Radiologists, Consultants, Physicians, Nuclear Medicines etc., The company requires the services of qualified doctors in these fields of Radiology, Pathology and Cardiology, Nuclear Medicine etc. who can render the service of interpreting the data and rendering the report of the diagnostic tests carried out by the assessee. The gist of the terms and conditions in the contract entered are as under. a) The contractual appointment will be for a period of 3 years from (date of issue of the contract to each in-house doctor) b) The consolidated gross payment towards your consultation fee will be Rs. ........../per month subject to the applicable TFDS c) During the period of your contract with the company, you will be entitled to increments based upon your performance. d) You are free to render your services to other concern or individuals at such times that do not conflict, with the terms of the contract with the company. e) You will be entitled to 20 days of leave per year f) On the conclusion of the above mentioned period of 3 years, this contract shall be subject to further extension on such mutually agreed....
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....ght to their knowledge. It is difficult to lay down any one test to distinguish the relationship of master servant from that of an employer and independent contractor. In many cases, the test laid down is that in case of master servant relation, master can order or require what is to be done and how it has to be done. But incase of independent contractor an employer can only suggest that what is to be done but not how it shall be done. Hon'ble Supreme Court in case of Piyare Lal Adishwar Lal Vs CIT(1960) reported in 40 ITR 17(SC) relying on Dharangadhara Vs State of Saurashtra (1957) SCR 152 held that in all cases the correct method of approach is whether having regard to the nature of work there was due control and supervision by the employer. The receipt of remuneration for holding an office does not necessarily gives rise to relationship of master and servant between the holder of office and the person who pays the remuneration. Whether a person is a servant or an agent would be determined by the duties of employee, the nature of business, terms of his employment/engagement and kind of supervisory control over his work. A person who is engaged to manage the business may be serva....
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....is running a Diagnostic Centre. The engagement and nature of work of specialized person including doctors arc not controlled by the assessee company. They are even allowed to engage themselves in private practice subject, to no conflict with contractual arrangement entered between assessee and the above mentioned specialized skilled persons. They purely render skilled services to assessee on the .basis of contract entered by them with the assessee company. They reach to certain intellectual conclusion on the basis of analysis of data put forward before them. During the analysis and intellectual conclusion arrived by them is based on their specialized skill. The assessee company has no interference in their diagnostics arrived at. These specialists are governed by their specialized knowledge in their field. The payment made, in lieu of their work, are nothing but as good as consultation fees. There is nothing on record to suggest that the doctors in question are given statutory benefits. Certain benefits such as leave, maternity leave are granted to ensure the smooth functioning of the institution. As stated above, all the eleven doctors arc at liberty to engage themselves in other ....