Service Tax on Cosmetic Surgery/Plastic Surgery

[Keshav Koparde]

Hi experts,

As per the notification No 26/2009-ST Dt 19.08.2009, the Govt has started levying the service tax on cosmetic/plastic surgeries.

The department has also been given the clarification what is taxable and not taxable.

The following services are only taxable;

1) Cosmetic Surgery

2) Plastic Surgery

But it clarifies that, surgery or cosmetic surgery which is performed for the purpose of medical treatment.

In deciding the taxablity, it should be kept in mind as to what is the purpose of surgery?. If it is a medical requirement, no service tax is levied. If it has only a beautification or appearance value, service tax should be levied. The dominant intention should decide the taxability aspect of cosmetic or plastic surgery.

Query:

How to draw line between medical requirement and beautification.

Please elaborate me.

Thank you

[CASeetharaman KC]

The exclusion provided covers surgery undertaken to restore or reconstruct anatomy or functions of the body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma. In other words only reconstructive surgery undertaken to restore one's appearance, anatomy or bodily functions which are impaired due to congenital defects, developmental abnormalities, degenerative diseases, injury and trauma would be excluded. Examples could be say impairments caused by burns, fractures, or congenital abnormalities like cleft lip.

AI Summary

Taxability of cosmetic surgery depends on dominant intention: aesthetic procedures taxed, reconstructive medical treatment excluded.
Service tax applies to cosmetic and plastic surgery when the dominant intention is beautification or appearance enhancement; procedures undertaken for medical necessity are excluded. The exclusion covers reconstructive surgery to restore anatomy or function impaired by congenital defects, developmental abnormalities, degenerative disease, injury, or trauma, with examples such as repairs following burns, fractures, or congenital cleft conditions.