Income TaxTax Deduction at Source TDS Under Section 194H Visavis Services Provided to Doctors by Pharma Companies for Attending Conferences

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The Tax Publishers Income Tax--Tax Deduction at Source TDS Under Section 194H Vis-a-vis Services Provided to Doctors by Pharma Companies for Attending Conferences CA. Nisha Bhandari The issue as to whether value of various services like taxi services, booking of air-tickets, cost of souvenir and cost of registration for the conference, etc., provided to doctors by pharma companies amounts to commission income liable to TDS under Section 194H is being discussed in the present write up. 1. Treatment of expenses incurred in providing freebees to Medical Practitioner by pharmaceutical and allied health sector Industry -CBDT's clarifications The council in exercise of its statutory powers amended the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 (the regulations) on 10-12-2009 imposing a prohibition on the medical practitioner and their professional associations from taking any Gift, Travel facility, Hospitality, Cash or monetary grant from the pharmaceutical and allied health sector Industries. Section 37(1) of the Income Tax Act provides for deduction of any revenue expenditure (other than those falling under Sections 30 to 36) from the business Income if such expense is laid out/expended wholly or exclusively for the purpose of business or profession. However, the Explanation appended to this sub-section denies claim of any such expense, if the same has been incurred for a purpose which is either an offence or prohibited by law. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Tax Deduction at Source

TDS Under Section 194H Vis-a-vis Services Provided to Doctors by Pharma Companies for Attending Conferences

CA. Nisha Bhandari

The issue as to whether value of various services like taxi services, booking of air-tickets, cost of souvenir and cost of registration for the conference, etc., provided to doctors by pharma companies amounts to commission income liable to TDS under Section 194H is being discussed in the present write up.

1. Treatment of expenses incurred in providing freebees to Medical Practitioner by pharmaceutical and allied health sector Industry -CBDT's clarifications

The council in exercise of its statutory powers amended the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 (the regulations) on 10-12-2009 imposing a prohibition on the medical practitioner and their professional associations from taking any Gift, Travel facility, Hospitality, Cash or monetary grant from the pharmaceutical and allied health sector Industries.

Section 37(1) of the Income Tax Act provides for deduction of any revenue expenditure (other than those falling under Sections 30 to 36) from the business Income if such expense is laid out/expended wholly or exclusively for the purpose of business or profession. However, the Explanation appended to this sub-section denies claim of any such expense, if the same has been incurred for a purpose which is either an offence or prohibited by law.