Medical transcription service

This query is : Resolved

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)
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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)
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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)
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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)
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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)
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17 December 2014 Yours is a case of BUSINESS.

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