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

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

Clinical establishment exemption: hospital services and employee doctor payments are non-taxable, but retained consultant-share fees may attract BSS.
Services by clinical establishments and payments to employee doctors are exempt from service tax. However, where consultant doctors are engaged on call and gross fees are shared, the portion retained by the hospital may be taxable as Business Support Services if it amounts to provision of infrastructure or support for the consulting doctor's business.