14 January 2011
Thanks Sarvana Sir.I am facing another doubt. I have given the task of doing audit of a Pvt Company which is providing CLEANING services to their client.They started their business just last year.They had not deducted S.T from one of their client for first five months as they did not have S.T Registration No. Then they started doing it. Whether they have to readjust the S.T for the previous 5 months? Plz give me advise.
15 January 2011
In case the value of taxable services exceed Rs 9.00lac, then only the Co. is required to get Registration. * Service Tax is not deducted from the bills of Service, but it is added with the services. * In case it is First year, Service Tax will be leviable when the total amount of taxable services exceeds Rs. 10.00 lac during the financial year. * Up to Rs. 10.00 lac , in the first year no service tax is payable, but in subsequent years, there is no such exemption. * Hope , the above will help you in carrying out the audit.
15 January 2011
Service Tax on Healthcare Services is Introduced in the Finance Act 2010.
Section 65(19b):- “business entity” includes an association of persons, body of individuals, company or firm but does not include an individual.
Section 65 (105) Taxable service means any service provided (or to be provided)- (zzzzo) by any hospital, nursing home or multi-specialty clinic-
(i)To an employee of any business entity, in relation to health check-up or preventive care, where the payment for such check-up or preventive care is made by such business entity directly to such hospital, nursing home or multi-specialty clinics; or
(ii)To a person covered by health insurance scheme, for any health check-up or treatment, where the payment for such health check-up or treatment is made by the insurance company directly to such hospital, nursing home or multi-specialty clinic;
1. Services provided by hospital, nursing home or multi-specialty clinic are only taxable. Hence health-check up and preventive care facilities provided by labs and diagnostic centres and individual doctors are not taxable.
2. Any services provided to an individual will not fall within the ambit of Service Tax.
3. In case of treatment to a person covered by insurance scheme is only taxable. Hence bills paid by individuals and other business entities on behalf of its employees will not attract service tax. Here the basic criteria for taxability is that the person undergoing treatment should be covered under health insurance scheme.
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