Nurse services

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Shekhar Todkar (Querist)
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05 March 2016 Hi, While auditing one of my client which hospital. In his case he received some nurse's on contract basis from consultant. And consultant not charging service tax as it is covered under mega exemption. But I think this exemption is available to the hospital and not for the consultant who provide services to hospital. So plz help me in this matter..

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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05 March 2016 Notification No:25/2012 - Service Tax dated 20th June 2012, often referred to as Mega Exemption Notification by entry no. 2, exempts this service from levy of Service Tax. The Entry reads as "2. Health care services by a clinical establishment, an authorised medical practitioner or para-medics;"

Trained nurses are para-medics and if the services were provided by an authorised medical practitioner while acting as a consultant and the services were rendered by trained nurses, then there will be no service tax. Even is the consultant was not an authorised medical practitioner, no liability for non-payment of service tax will arise on your client, as even though the consultant provided 'Manpower Supply Services' by which the liability is shifted on to the service recipient under RCM (Notification No.30/2012 - Service Tax), since the services supplied was of para-medics (which is covered under the 'Negative List', it will be provision of exempted services not subject to service tax.

Shekhar Todkar

Shekhar Todkar (Querist)
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10 March 2016 Thank you sir...

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