Vat liability on hospital

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C.A. Hardik Patel (Querist)
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12 April 2012 Hospital charge in invoice medicine exp for medicine which is given to patient during treatment. There is 4 % vat in gujrat. i want to know that is there any liabilty to hospital under Vat act.
Hospital has pharmacy which sales medicine to patient directly. i know it is taxable but i am confused for such medicine which consume during treatment.
Plz reply

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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12 April 2012 Mr H Patel,
An invoice is to be issued for a sale in any form.A hospital bill on medicines given to patients with VAT is correct.
MJK

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C.A. Hardik Patel

C.A. Hardik Patel (Querist)
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14 April 2012 how to detemine turnover for vat purpose?
here medicine sale by pharmacy which is unit of hospital . Hospital is pvt ltd company.
1) Total income of hospital including sales of pharmacy or
2) only sales or purchase of pharmacy.

C.A. Hardik Patel

C.A. Hardik Patel (Querist)
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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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14 April 2012 Mr H Patel,
For VAT purpose only Sales of Pharmacy are required to be maintained in a seperate account with stock figures.As hospital charges are related to a service they should kept seperate for ST,if any.
MJK

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