S. 194J applies to payments made to non-professionals such as hospitals. CBDT Circular on TPA liability is valid except for view on penalty

Dedicated Health Care Services TPA Vs ACIT (Bombay High Court) The assessee, a Third Party Administrator (TPA), provided services such as hospitalisation services, cashless access services and services in connection with the processing and settlement of claims and making payment to hospitals to holders of health insurance policies issued by insurance companies. All claims payable by the insurance company to the policyholder were paid through the TPA from a Claim Float Account (CFA) provided by the insurance company. In order to facilitate cashless hospitalisation, the TPA entered into a memora...