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

AI Summary

Pharmaceutical Company Seeks Clarification on Service Tax for Pharmacovigilance Services in India; Payment in INR A pharmaceutical manufacturer inquires about the applicability of service tax on pharmacovigilance services provided to another Indian company for medicines marketed abroad. The payment for these services will be in Indian Rupees. They seek clarification on whether the service is taxable, as it is not listed in the negative list or mega exemption notification, and under which service category and accounting head the tax should be discharged. A respondent suggests that the service falls under 'Technical testing and analysis service' with specific accounting codes for tax collection, other receipts, and penalties.