TPAs to deduct TDS u/s.194J on payment to hospital, No penalty u/s. 271C for non deduction

Vipul Med-corp TPA Pvt Ltd & Ors Vs. CBDT (Delhi High Court)- The High Court held that payments made by the insurance company or the TPAs could be in the nature of business expenditure as per accounts/books maintained by them. However, tax has to be deducted under Section 194J of the Act if the payment is made to a resident person towards fees for professional services. Further, the nature of payment in the hands of the payee/recipient is relevant and that determines whether tax needs to be deducted or not. Section 194J of the Act does not specify that the payer must have availed and tak...