Applicability of service tax to hospital & related services?

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Dicson (Querist)
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06 February 2014 Is service tax is applicable to hospital and related services (X-ray, Scan and Lab) or not?

Clarify with provisions or notifications

Thankyou.

CA. Narottam Kumar Rawat

CA. Narottam Kumar Rawat (Expert)
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06 February 2014 Healthcare services by a clinical establishment are exempt under notification 25/2012-ST.

The Words "Healthcare Services" and "Clinical Establishment" are defined in the same notification:

(t) “health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

(j) "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;

Most probably above services are exempt, however to conclude the same more facts are required.

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