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2010 (6) TMI 642 - AT - Income TaxTDS on amount as paid/payable to doctor - tds u/s 192 or 194J - assessee is a partnership firm engaging the services of doctors - Whether the payment made to the doctors is salary or else it is only the professional charges so as to attract u/s 194J? - HELD THAT:- After examining the agreement we found that agreement does not provide for any supervision or control over the doctor. The doctors at their own discretion treat, the patients by making use of the infrastructural facilities and manpower available in the hospital. The doctors are governed by the rules and regulations other regulatory body in their professional activity and the assessee being a hospital they expected the doctors to maintain the reputation and image as a corporate hospital. This expectation of the assessee to maintain the image and reputation as a corporate hospital cannot be considered to be exercising control and supervision over the doctors in their professional activity. In our opinion, the agreement between the assessee and the doctors is one for providing professional services, and there is no element of employer and employee relationship existing. CIT(A) has rightly held that tax has to be deducted u/s 194J and not u/s 192. The doctors engaged by the assessee are to be treated as consultants, only for rendering professional services. The matter would be entirely different in case the doctors are re-employed as medical officers to work for fixed hours and they are given the facility of leave, PF, gratuity, bonus etc. Since such facilities are not given and what was paid to the doctors is only through a structured arrangement for the services rendered by them for two years, in our opinion, there is no employer and employee relationship existing. Therefore, the CIT(A) has rightly held that tax has to be deducted under section 194J and not under section 192 In the result, appeal of the revenue is dismissed.
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