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.

[DR.MARIAPPAN GOVINDARAJAN]

What are the services rendered by the Hospital to levy service charge?

[Ganeshan Kalyani]

The service rendered by a clinical establishment is exempt from the levy of service tax as per Notification no. 25/2012 dated 20.06.2012 as amended from time to time. Thanks.

[ALOK SHARMA]

Hospitals are receiving 10% Service Charges from Indoor patients on Gross Amount of Final Bill. My query if they are charging amount against all services then can they charge service charges on gross amount again.

[Ganeshan Kalyani]

It depends upon their billing procedure .

AI Summary

Service Tax: hospital service charges' taxability depends on services billed and the hospital's billing procedure. Service Tax applicability to a hospital's final-bill service charge depends on the legal characterisation of the services covered and the hospital's billing procedure. The document notes that services by a clinical establishment are exempt under the relevant notification, and that determining taxability requires identifying what services the charge represents and how the hospital allocates and describes the charge on the bill.