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Health Services

This query is : Resolved 

16 October 2010 As per section 65(15), hospital has to charge service tax on person covered by health insurance scheme, for any health check-up or treatment, where the payment for such healt check-up or treatment is made by the insurance company directly to such hospital. Please clarify on the followings:

(a) Whether service tax has to be charged on Implants and medicines purchased by hospital for the patient and the same is included in the final bill.

(b) As per above defination, it says "where the payment is made the insurance company directly to such hospital". Kindly clarify about service tax applicability, if payment is made by "TPA (Third party Admin or business entity" on behalf of insurance company.

(c) The act does not provide defination of "Health Services". What are the services included under health services.

18 October 2010 Implants andmedicines are goods which are transferred and therefore no ST on the same.
TPA being agents of Insuracne co , in my view directly would include them. May be disputed and judcially decided.
For insuracne co the taxable services are different and for companies the same is different.


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