Section 194J applies to the payments made by the Third Party Administrators to juristic or corporate entities trust/society hospitals to settle/pay the dues of the policy holders on behalf of the insurance company in view of Circular No 8 of 2009 dated 24 November 2009 — as held by DelHC in Vipul Medcorp TPA (P) Ltd and Ors v CBDT and Anr — In favour of: Revenue (Partly).
Circular No 8 of 2009 dated 24 November 2009 stating that the failure to deduct tax at source under s 194J would necessarily attract penalty amounts to interference with the discretion of authority, and to that extent, the circular is invalid.
Decided on: 30 September 2011.
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