Service tax on cosmetic surgery

[Amresh kumar]

Dear Sir,

Service tax was imposed on cosmetic surgery.

My query is

1. Is service tax payable merely on consultancy fees by the Doctor.

2. Plastic or cosmetic surgery is performed in the hospital and the Doctors are engaged on commercial basis. In my opinion the service tax is to be discharged by the Hospital and not by the Doctor.

3. The Doctors are paid by the hospitals deducting TDS under 26 AS. Now the department insists that doctor pay the service tax ad per 26 AS.

4. The department is also asking for contract or revenue sharing agreement. The same doctor is engaged by a number of hospitals.

Any circular/ guidelines in this regard please.

Regards

Amresh Kumar

AI Summary

Who Pays Service Tax on Cosmetic Surgery: Doctors or Hospitals? Examining Contracts and Revenue-Sharing Agreements. A discussion on the applicability of service tax on cosmetic surgery, specifically addressing whether the tax should be paid by doctors or hospitals. The initial query suggests hospitals should bear the tax burden since they deduct TDS from doctors' payments. Replies clarify that service tax is payable on the gross amount charged, including TDS, and that doctors, as professionals, are liable for the tax, not hospitals, unless the service is exempt. The discussion also touches on revenue-sharing agreements and the need for examining contracts to determine tax liability, with references to relevant case laws supporting these interpretations.