service provide by hospital to business entity/company employee

[ANKUR SINGHAL]

Dear Sir,

              i want to know that if hospital provide the service to business entity / company employee and also know that if hospital take reimbursment from TPA for patient bill, we will requried to be charged service tax in bill or not.

and what is the service tax liabilites in this regard.

Please Solved my problem

Thanking You

[Guest]

The services provided by clinical establishment are exempted.

In the case of most of the hospitals there are employee Doctors as well as Doctors hired and paid for services on call basis and the fees collected are shared on agreed basis. In such case the paymnet made to employee doctors is exempted.

However, amount retained out of the gross fees charged to the patient out of the fees charged when shared with Consultant Doctor hired on call basis can be taxed under BSS considering it as provision of infrastructue for support of business of the consulting Doctor.

AI Summary

Service Tax Exemption for Clinical Establishments; Consultant Doctor Fees May Be Taxed as Business Support Services A query was raised regarding the applicability of service tax on services provided by hospitals to employees of business entities and the reimbursement process involving Third Party Administrators (TPAs). The response clarified that services by clinical establishments are generally exempt from service tax. Payments to employee doctors are exempt, but fees shared with consultant doctors hired on a call basis may be taxed under Business Support Services (BSS), as it is considered providing infrastructure support for the consulting doctor's business.