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The Gujarat High Court in (2021] 439 ITR 692 (Guj)-INTAS PHARMACEUTICALS LTD., held that in the absence of an element of agency between the assessee and the doctors, the provisions of section 194H could not be invoked viz a viz the expenses incurred by the pharma assessee on the doctors towards taxi fares, air fares, etc., for attending regional conferences or scientific conferences.
To negate the impact of such judgement the 2022 budget in the tax proposals ( 194R)have sought to tax such expenses in the nature of benefits or perquisite in the hands of doctors notwithstanding any agency relationships so as to compulsorily require withholding tax at 10 percent on such expenses.

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