Exemption on payment of service tax by hospital

[VENKAT S]

Dear Experts,

Is there any provision enabling a hospital/clinic to claim exemption from payment of service tax on the input services(like rent, etc) availed by it?

Thankyou all.

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 2 of Notification No. 25/2012-ST dated 20.6.2012 as amended " Health care services by a clinical establishment, an authorised medical practitioner or para-medics and Services provided by way of transportation of a patient in an ambulance are exempted from payment of service tax." Rent paid to hospital building etc are not exempted from service tax.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ranganathan.

[KASTURI SETHI]

Yes. No exemption available.

[Ganeshan Kalyani]

Yes i am also of the same view as expressed by learned experts.

AI Summary

Exemption for health care services does not extend to rent paid for hospital premises or other input services. The exemption applies to health care services by a clinical establishment, an authorised medical practitioner or para-medics, and ambulance transport of patients; it does not extend to input services procured by the hospital, such as rent, which remain taxable if leviable.