Retainer fee to doctor would attract sec. 192 TDS instead of sec. 194J if terms of contract prove him an employee

Cumulative effect of agreement with retainer-doctor is decisive as to whether TDS to be deducted under section 192 or under section 194J

Where retainer doctor debarred from taking any other assignment with any other company engaged in business similar to assessee-company(corporate hospital), required to follow rules, regulations and policies of assessee-company and required to report to the head of the department in which he is working and he was to be paid fixed consolidated monthly fee with no fee-sharing with hospital, the retainer-doctor is employee and not independent professional doctor and his fixed monthly retainer fee is salary which is liable to deduction of tax under section 192 and not professional fee liable for TDS under section 194J. The retainership agreement was also for a limited period. Mere fact that the retainer doctor has to raise monthly bills for getting payment of consolidated monthly retainership fee will not make him an independent professional doctor when in substance the cumulative effect of agreement indicates employer-employee relationship.

Refer: [2014] 42 taxmann.com 200 (Jaipur - Trib.) (TM)
IN THE ITAT JAIPUR BENCH 'A' (THIRD MEMBER)
Escorts Heart Institute & Research Centre Ltd.
v.
Deputy Commissioner of Income-tax (TDS), Jaipur