Case Law Details
ACIT (TDS) Vs Victor Hospitals and Medical Services Limited (ITAT Panaji)
In a recent case, the Income Tax Appellate Tribunal (ITAT) Panaji addressed the issue of Tax Deducted at Source (TDS) under Section 194J of the Income Tax Act in the matter of ACIT (TDS) Vs. Victor Hospitals and Medical Services Limited. The crux of the case revolved around the classification of remuneration paid to consultant doctors. The ITAT’s verdict shed light on the applicability of TDS provisions in such scenarios.
Background:
Victor Hospitals and Medical Services Limited, a private limited company conducting its operations under the name “Victor Hospital and Medical Services Limited,” underwent a survey. During the survey, the Assessing Officer (AO) discovered that the company employed several doctors as full-time consultants, remunerating them under the professional fees category.
The AO took it upon themselves to delve into the nature of the employment relationship between the company and the consultant doctors. The AO meticulously reviewed the employment contracts of each doctor and concluded that the provisions of Section 192B of the Income Tax Act, which pertains to TDS on salary payments, were applicable.
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