regarding chargeability of service tax

[Asked by Guest]

A  Practising doctor rendering service in ahospital as consultant & hospital ( less than 60 beds) charges service tax from the patients & gives fixed amount of fee to the consultant doctor..Is the consultant doctor liable for service tax?????

[Mahir S]

in this regard, please refer to sub-clause (zzzzo) of clause (105) of section 65 of the  Finance Act for services relalting to  Clinical Establishment, as detailed below :

Any services provided or to be provided to any person,—

        (i) by a clinical establishment; or

       (ii) by a doctor, not being an employee of a clinical establishment, who provides services from such premises for diagnosis, treatment or care for illness, disease, injury, deformity, abnormality or pregnancy in any system of medicine;

 

Vide service tax vide Notification No. 30/2011 – Service Tax dated 25.04.2011, exemption is provided to the taxable service referred to in sub-clause (zzzzo) of clause (105) of section 65 of the Finance Act, from the whole of the service tax leviable thereon under section 66 of the said Act..

In view of above, no service tax is applicable on the income earned by the practising doctor.

(However, service tax is applicable on the above advice.........)))

[ALOK GUPTA]

Service Tax on Health Services is no more leviable. Further, in recently announced Budget proposals 2012-13,  such activity exists in negative list. Hence, this service is neither taxable at present nor will be taxable in near furture.

Pls can any one guide me whether service tax is chargeable to hospitals....including cashless and insurance schemes

AI Summary

Exemption of clinical establishment services: consulting doctors' fees are not subject to service tax under current law.
A non employee consulting doctor providing diagnosis, treatment or care from clinical establishment premises is covered by the clinical establishment service description and, under the stated exemption and subsequent negative list treatment, the practising doctor's fee is not subject to service tax; this contrasts with hospitals charging service tax to patients, which does not render the consultant's income taxable.