Medical transcription service

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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2014 Would you please advise me if a Medical Transcription service provider (ITES/BPO) firm comes under Business or Profession for audit purpose. The gross annual receipt for service provided is 45 lakh annually.

Please advise

Amol S Joglekar

Amol S Joglekar (Expert)

17 December 2014 Except in the case of Individual providing such a service by himself or herself, it falls under BUSINESS. The turnover limit of 1 crore is applicable for TAX audit.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 December 2014 It will come under business. As per IT Act this service not included under profession.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

17 December 2014 If the service provider is an INDIVIDUAL, medical transcriptions comes under 'PROFESSION. Therefore,if gross receipts exceeds Rs.25 lacs per annum,tax audit applies to such individuals.

PS:- Inference is from section 44AA(2), though 'medical transcription' is not mentioned in 44AA(1) and notification SO 385(E) dated 4.5.2001.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2014 Thank you for your inputs regarding this clarification. We are getting transcription done through our staff employed. But mine is a proprietorship firm. I have been filing tax till now as business. Does INDIVIDUAL means proprietorship firm?

Please also advise if getting receipt in US$ from US based clients applies service tax.

Thank you for your kind advise...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 December 2014 Proprietorship firm means individual but you are doing the work done by employing people it can be classified as business.

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Amol S Joglekar

Amol S Joglekar (Expert)

17 December 2014 Yours is a case of BUSINESS.

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