Service Tax on Service Charges received by the hospital from the patient in final bill.

[ALOK SHARMA]

Dear all members,

My question is as under:

If any hospital receive service charges from the patient in final bill. Then service charges will come under the purview of service tax or not?

Kindly reply.

AI Summary

Are Service Charges in Hospital Bills Subject to Service Tax? Clinical Establishment Services May Be Exempt Per Notification. A discussion on whether service charges received by hospitals from patients in their final bills are subject to service tax. One participant questioned if these charges fall under service tax. Another replied that services by clinical establishments are exempt from service tax according to a specific notification. The original inquirer clarified that hospitals charge 10% service charges on the gross amount of the final bill and questioned if this is permissible. The response indicated that it depends on the hospital's billing procedure.