input credit of service tax on hospitals

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hi all

will somebody shed light on as to what are the areas on which a hospital can avail the input credit of SERVICE TAX as per the latest amendment in Finance Act 2010 .. that Service Tax liability will be applicable on Healthcare Organisation.

Replies (2)

There is no specific list of such Input Services.

So, Credit is to be claimed where the Input Services are used for providing Taxable Services.

i,e Services provided in relation to Health Check up or Preventive Care.

 

But it would Exclude:

Any Services used in relation to

Cosmetic or Plastic Surgery Services for curing abnormalities or defects etc..

You may like to refer to rule 6 of the cenvat credit rules.

braodly :

a. Input services used exclusively for exempted services - no credit.

b. Input services used exclusively for taxable services - 100%

c. 16 Common specified services [ see 6 (5)] - 100%

d. Other common services - Porportinately as per formuale.  


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