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2023 (1) TMI 132 - HC - Income TaxTDS u/s 192 or 194J - payment which was made to the professional is salary or professional fees - assessee is running a hospital within State of Rajasthan and they have entered agreement with three different doctors - HELD THAT:- Appellant frankly conceded that the appeals involving similar issue have already been dismissed by this Court in view of the judgment passed in Escorts Heart Institute & Research Centre Ltd. 2017 (9) TMI 1660 - RAJASTHAN HIGH COURT as held that conditional order shall not absolve the assessee from the deduction of TDS liability. The compliance/non-compliance of the exemption conditions by the recipient in advance cannot be foreseen in advance by the assesseecompany. Moreover, TDS liability under s. 194-I is not dependent on the tax liability/entitlement toexemption of the recipient. Irrespective of the tax exemption/tax liability of the recipient the assessee has to discharge the TDS liability under s.194(1). No certificate under s. 197 of the Act is furnished by the assssee to establish that the recipient is exempted from the tax liability. Again same question came up for consideration in other decision of Karnataka High Court 2010 (2) TMI 1163 - KARNATAKA HIGH COURT where after considering the judgment in Elbit Medical Diagnostics Ltd., the Court has come to the conclusion that retainer in service are professional service and issue was answered in favour of the assessee.
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