Whether Vat or Service tax????
This query is : Resolved
23 June 2009
one of our client who prints the medical reports of patients of one multi speciality hospital on their behalf and laminates the printed medical report and despatches that report directly to patients and charges the hospital for this service provided. Hospital is not supplying any material to our client for printing and client himself is purchasing materials reQuired for printing. My client doubt is whether he has to charge service tax or vat in the bill charged on hospital.
Please reply soon... very urgent......really urgent....
Please reply soon... very urgent......really urgent....
24 June 2009
Am not able to decide on VAT.
However service tax on services on behalf of another in realtion to printing are presently exempt under not. [ Maybe 14/ 05.]
However service tax on services on behalf of another in realtion to printing are presently exempt under not. [ Maybe 14/ 05.]
03 August 2025
Here’s a clear explanation for your client’s case regarding VAT vs. Service Tax on printing medical reports:
---
### 1. **Nature of the Activity**
* Your client is **printing, laminating, and dispatching medical reports** on behalf of a hospital.
* The client **buys the raw materials** (paper, laminating sheets, etc.) himself.
* The hospital only pays for the service; it does not supply materials.
---
### 2. **Is it Sale of Goods (VAT) or Service (Service Tax)?**
* **If your client is selling goods (printed reports) to the hospital, VAT applies.**
* **If your client is providing a service (printing & laminating as a job work), service tax applies.**
---
### 3. **Key Points**
* Since your client is **not supplying any material** and the hospital does not own the materials, this is a **service of printing and laminating**.
* Under the Service Tax law (prior to GST), **“Printing and allied services” were taxable under service tax**, unless exempt.
* The activity is **service in nature**, so **Service Tax** applies, **not VAT**.
* VAT applies only if there is a **sale of goods** — i.e., when your client sells printed medical reports as goods to the hospital.
---
### 4. **Conclusion**
* Your client should **charge Service Tax on the bill to the hospital**.
* VAT should **not** be charged because this is not a sale of goods.
* The taxable service is “Printing and allied services” under the service tax category.
---
If you want, I can help draft a sample invoice or calculate service tax for your client!
---
### 1. **Nature of the Activity**
* Your client is **printing, laminating, and dispatching medical reports** on behalf of a hospital.
* The client **buys the raw materials** (paper, laminating sheets, etc.) himself.
* The hospital only pays for the service; it does not supply materials.
---
### 2. **Is it Sale of Goods (VAT) or Service (Service Tax)?**
* **If your client is selling goods (printed reports) to the hospital, VAT applies.**
* **If your client is providing a service (printing & laminating as a job work), service tax applies.**
---
### 3. **Key Points**
* Since your client is **not supplying any material** and the hospital does not own the materials, this is a **service of printing and laminating**.
* Under the Service Tax law (prior to GST), **“Printing and allied services” were taxable under service tax**, unless exempt.
* The activity is **service in nature**, so **Service Tax** applies, **not VAT**.
* VAT applies only if there is a **sale of goods** — i.e., when your client sells printed medical reports as goods to the hospital.
---
### 4. **Conclusion**
* Your client should **charge Service Tax on the bill to the hospital**.
* VAT should **not** be charged because this is not a sale of goods.
* The taxable service is “Printing and allied services” under the service tax category.
---
If you want, I can help draft a sample invoice or calculate service tax for your client!
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