12 July 2022 | News
Requests reconsideration of TDS provisions on reimbursement of out-of-pocket expenses by service providers as well as expenditure related to dealer or customer business conferences
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Medical Technology Association of India (MTaI) has urged the government to reconsider its recently introduced Tax Deducted at Source (TDS) provision on free medical samples provided to doctors. Taxation on these samples will adversely affect hands-on training for doctors and clinicians and therefore impact patient's access to life-saving and life-enhancing technologies.
MTaI has also urged the government not to consider the expenses incurred on doctors’ (trainees) travel and stay for product training and application usage as doctors’ income because they (doctors) are often required to travel mainly due to difficulties in mobilising medical devices and equipment. Thus, TDS should not be levied on such expenses.
MTaI has already written to the concerned authorities highlighting the concerns of the industry.
As per the provisions, free medical samples provided to doctors, reimbursement of out-of-pocket expenses incurred by healthcare professionals and expenditure about dealer or customer business conferences would be treated as a benefit and therefore be subject to TDS deduction.