Service tax on pharmacovigilance service

[Kadayam Ganapathy Subramanian]

Dear Sirs,

We are the manufacturer of Pharmaceutical products and our R & D Center is going to provide pharmacovigilance service to another company in India in respect of medicines manufactured by them in India and marketed in foreign countries.

The consideration for the above service is going to be received by us in Indian Rupee.

We feel that the above service will attract service tax as the same is neither figured in the negative list nor in the mega exemption notification. If it attracts service tax, under what category of service and accounting head in which service tax is liable to be discharged by us. 

Kindly provide your valuable opinion in this regard at the earliest as we have to finalize this issue within this week.

Regards,

K.G Subramanian

E.mail ID: subramaniankg at the rate of microlabs.in

[Rajagopalan Ranganathan]

Sir,

   In my opinion the service rendered by your company will fall under the category Technical testing and analysis service whose accounting codes are 00440008 (tax collection),00440009(other receipts-interest) and 00441298 (penalty).

AI Summary

Service tax on pharmacovigilance treated as Technical testing and analysis service, liable to service tax and specific accounting codes. Pharmacovigilance services by a domestic R&D centre for medicines manufactured in India and marketed abroad are not exempt and attract service tax as Technical Testing and Analysis Service; accounting codes cited for tax collection, other receipts (interest) and penalty should be used to discharge and record the service tax liability.