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2017 (10) TMI 310 - AT - Income TaxTDS liability on Payment to consultant doctors - employer-employee relationship - payments are salary so as to bring into effect of section 192 or section 194J - assessee is a domestic company, engaged in providing health care services, operates a hospital - payments made to consultant doctors attached to the hospital - Held that:- This issue is squarely covered in favour of the assessee by the decision of this Tribunal in assessee’s own case for AY 2011-12 held that these "Consulting Doctors" are generally well skilled and knowledgeable in their area of specialization and hence, attract patients on their own strength and goodwill and do not depend upon the hospitals for a continuous flow of patients. Further the Consulting Doctors are free to treat and manage their patients as they feel fit and in the course of the treatment, the Consulting Doctors use the infrastructure of the hospital to which they are attached. In return for being permitted to use the infrastructure of the hospital, the Consulting Doctors pay a certain percentage of their fees towards costs. The fee to be charged to the patient is determined after mutual consultation understanding between Hospital and Doctor. However, for the administrative, commercial and accounting ease, the hospital collects the fees from the patients and remits the same to the Consulting Doctor after retaining its share as agreed upon. These Doctors merely use the infrastructure and facilities of the hospital and pay for the usage out of the fees collected from the patients. Since the Consulting Doctors retain their independent status, they take their own professional indemnity insurance, which means in the event of any negligence, they are accountable to compensate the patients. These aspects are sufficient to prove that the consultant doctors are very much different from the regular employees doctor of the assessee. We find no infirmity with the findings of Ld. CIT(A) and, therefore, we hold that the payments made to the consultants doctors are not salary, and, therefore, tax is not deductible u/s.192 of the Act. Hence, the relief granted to the assessee is sustained - Decided against revenue
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