TPA’s to deduct TDS when releasing payment to Hospitals

TPA’s (Third Party Administrators) to deduct TDS when releasing payment to Hospitals

Recent news item indicates that this decision is now being implemented.We are not going into details of the same from taxation angle but we feel that the impact of this will be increase in rates by hospitals as they will find it a necessity to increase the rates with a view to handle the increased need for working capital.

The normal inflation of health care in India is 15% per year-should we expect 18% during 2010. Let us wait and watch.