Service tax applicability for hospital


This query is : Resolved 

24 November 2014 One of our clients, a hospital, has entered into an agreement with a diagnostic centre. The essence of the agreement is that the diagnostic centre shall use the premises of the hospital and diagnostic centre shall bill the customers in its own name. the hospital shall provide infrastructural support to the diagnostic centre alongwith the premises to operate therefrom. Diagnostic centre shall collect service tax on entire billing. The revenue generated from such billing shall be shared among the hospital and diagnostic center in the ration 15: 85.

Will service tax be applicable on 15% income of hospital?

24 November 2014 Service tax not applicable on diagnostic services.

25 November 2014 Can I get any documentary evidence...?

25 November 2014 Please see the link.


https://www.servicetax.gov.in/newtax_2k1/servtax_annex1.htm

25 November 2014 Thanks..
My doubt is whether hospital need to collect service tax on revenue shared with diagnostic center..?

25 November 2014 Not required...............


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