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

Service tax liability on cosmetic surgery: professional fees attract tax on gross consideration, contractual terms determine incidence.
Service tax is leviable on the gross consideration for cosmetic surgery services; a professional doctor providing consultancy or surgery is generally the service provider and liable to tax on fees received. TDS-deducted amounts remain part of the taxable consideration. Contractual terms between doctor and hospitals, the existence of revenue-sharing arrangements, and whether a procedure is therapeutic (and thus exempt) are determinative factors the department examines to allocate liability.