Sum paid to consultant-doctor without any stipulation of working hours or leave would attract sec. 194J TDS

IT: Where from contracts, no stipulations regarding working hours, academic leave or attachments had been found which would reveal that consultant doctors were employees of assessee, Tribunal was right in holding that there existed no relationship of employer and employee between assessee and consultant doctors and accordingly, TDS under section

194J would be applicable on doctors remuneration and not under section 192

[2015] 55 taxmann.com 75 (Bombay)

HIGH COURT OF BOMBAY

Commissioner of Income-tax (TDS), Pune v. Grant Medical Foundation

Section 194J, read with sections 192 and 201 of the Income-tax Act, 1961 - Deduction of tax at source - Fees for technical/professional services (Doctors) - Whether where well-known doctors in specified fields are invited to join hospitals for a fee or honorarium and there are certain terms drawn so as to understand relationship, then, in every case such terms and attendant circumstances would have to be seen in their entirety before arriving at a conclusion that there exists a employer-employee relationship and no general rule could be laid down - Held, yes - Whether where from contracts, no stipulations regarding working hours, academic leave or attachments had been found which would reveal that consultant doctors were employees of assessee, Tribunal was right in holding that there existed no relationship of employer and employee between assessee and consultant doctors and accordingly, TDS under section 194J would be applicable on doctors remuneration and not under section 192 - Held, yes [Para 38][In favour of assessee]