TaxTMI 
TaxTMI 
Dear Sir,
Is service tax applicable on the construction of hospital or it is exempted .
Service tax on Construction activity.
20 Feb 2016 
3 Replies 
1424 Views Asked by
Service tax applicability on hospital construction: taxable when provided to non-government recipients; exemptions have been curtailed.
Hospital construction services are generally taxable as service tax where the recipient is other than the Government, Government authority, or Local authority; one view states taxability applies irrespective of whether the builder is government or private. Recent amendments have narrowed prior exemptions for construction services, so hospital construction should be treated as taxable unless a specific statutory exemption for the recipient or contract is clearly available. (AI Summary)
Hospital construction services are generally taxable as service tax where the recipient is other than the Government, Government authority, or Local authority; one view states taxability applies irrespective of whether the builder is government or private. Recent amendments have narrowed prior exemptions for construction services, so hospital construction should be treated as taxable unless a specific statutory exemption for the recipient or contract is clearly available. (AI Summary)