Service Tax on manpower services provided to hospitals

[Hukumaram Tambaram]

Sir, What is the service tax applicable on manpower services provided to the hospitals. As hospitals are corporates but have not taken service tax registration as health care services are exempted. In this scenario are the service providers are required to pay ST in normal mechanism?

[KASTURI SETHI]

Supply of manpower is not exempted from ST. Only treatment and following services are exempted from ST vide Notification No.25/12-ST as amended.

“2	(i)	Health care services by a clinical establishment, an authorised medical practitioner or para-medics;
	(ii)	Services provided by way of transportation of a patient in

[rajkumar shukla]

agreed with Kasturiji.

[Hukumaram Tambaram]

sir, who is liable in this scenario? the service provider or service recipeint?

[KASTURI SETHI]

As you mentioned in query, Manpower has been supplied to Corporate. So liability of Service Tax is cast upon Service Receiver. We are talking of pre-GST era.

[Ganeshan Kalyani]

corporate has to pay service tax on manpower supply service under reverse charge mechanism.

AI Summary

Reverse charge on manpower supply: corporate hospitals must bear service tax liability for outsourced manpower supplied to their establishments.
Supply of manpower to healthcare providers is not covered by the health-care exemption and is taxable; when manpower is supplied to a corporate hospital the service receiver bears the service tax liability under the reverse charge mechanism in the pre GST framework, making the corporate hospital responsible to discharge service tax on the outsourced manpower.