Medical Technology Association of India (MTaI), represents the leading research-based medical technology companies with a footprint in manufacturing, R&D, and healthcare worker training. The association has urged the Union Government to reconsider its recent introduction of Tax Deduced At Source (TDS) on free medical samples. 

In a letter written by MTaI, the authorities have highlighted several concerns of the industry such as free medical samples provided to the doctors, reimbursement of out-of-pocket expenses incurred by healthcare professionals, and expenditure on dealers or customer business conferences, etc. According to the recent guidelines published by the Central Board of Direct Taxes (CBDT) on 16th June 2022, these concerns were treated as benefits, and therefore, subjected to TDS deduction. 

Mr. Pavan Choudary, Chairman, and Director-General, MTaI, stated that samples provided to doctors and clinicians were always marked as units that were meant for physician-only by the Drugs and Cosmetics Act and Medical Devices Rule, 2017. He also added that medical device samples are a key to providing hands-on training to doctors and clinicians in both in-vivo and in-vitro conditions. He reasoned that any taxation on medical device samples will prohibit the training activities and hinder the doctor’s ability to deliver an optimal patient outcome which may impact a patient’s access to life-saving and enhancing technologies.