Service tax for doctors

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 December 2012 are doctors suppose to charge service tax to hospitals for their professional services rendered to patients on behalf of the hospital ??

if it is exempt then is it exempt from inception of service tax or from some particular date ??

03 December 2012 As far as I am concerned ., doctors or clinical establishments are not liable to collect or pay service tax., under point 2 of 25/2012 notification

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Querist : Anonymous

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03 December 2012 But was it applicable before this notification??

03 December 2012 previously the provisions were...
Service provided by doctors other than cosmetic/ plastic surgery + other than services like marketing ( assistacne to market pharma products and reciveing commision) were excluded.


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Querist : Anonymous

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Querist : Anonymous (Querist)
04 December 2012 thank u .....

but i would be really grateful if u could provide us with some notification, circular or link for the same.

24 July 2025 Here’s a clear breakdown about service tax applicability on doctors’ professional services to hospitals:

1. Are doctors required to charge service tax to hospitals for services rendered on their behalf?
No, doctors are exempt from charging service tax on their professional services.

The services by a clinical establishment, an authorized medical practitioner or paramedics are exempt from service tax under Notification No. 25/2012-ST dated 20.06.2012, specifically Entry 2 of the exemption list.

2. Is this exemption from the inception of service tax or from a specific date?
The exemption for medical services was not applicable from the very beginning of service tax (1994).

Initially, medical services were taxable, but since the exemption notification came into force, such services have been exempted.

Specifically, Notification No. 25/2012-ST dated 20.06.2012 consolidated and clarified exemptions including medical services.

Before this, there were earlier notifications exempting medical and health services in various forms, but the exemption has evolved over time.

3. Historical perspective
Prior to Notification 25/2012, service tax was charged on certain healthcare and medical services, especially if provided by hospitals or clinics under some circumstances.

However, services by medical practitioners in the clinical establishment context were generally exempted through earlier notifications like Notification No. 26/2007-ST dated 01.03.2007, which exempted services by clinical establishments.

So, doctors rendering professional services to hospitals were not required to charge service tax even before 2012, by virtue of earlier notifications.

Summary:
Question Answer
Are doctors liable to charge service tax on professional services to hospitals? No, exempt under Notification 25/2012-ST (Entry 2)
Since when is this exemption applicable? Exemption existed prior to 2012 via earlier notifications; consolidated in 2012 notification
Is the exemption for clinical establishment services? Yes, clinical establishments and authorized medical practitioners are exempt



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