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?

AI Summary

Corporate Hospitals Liable for Service Tax on Manpower Services Under Reverse Charge Mechanism Pre-GST A query was raised regarding the applicability of service tax on manpower services provided to hospitals, which are corporate entities but exempt from service tax due to their healthcare services. It was clarified that while healthcare services are exempt, manpower supply is not. The liability for service tax falls on the service receiver, i.e., the corporate hospitals, under the reverse charge mechanism, applicable in the pre-GST era. Multiple participants agreed that the corporate entity receiving the manpower services is responsible for paying the service tax.