Is service tax applicable to doctor

Dear Mr. Santosh

 In my view, these services are not taxable since they are covered under Exemption list.

As per Mega Exemption 25/2012 dated 25.04.2011, Service Tax dated 20.06.2012, Ministry of Finance Government of India “Health Care Services at clinical establishments, an authorized medical professional or paramedics is exempted under service tax.

The clinical establishment as per Notification no. 30/2012 would mean any hospital, nursing home, clinic, sanatorium or any other institution by whatever name called in India. It could be a place established as a part of an establishment or any private diagnostic centre like x-ray clinic, pathological laboratory or any diagnostic or investigative center. This definition is  as per Clinical Establishment Act 2010.

“health care services” means any service by way of  diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma

Only services in recognized systems of medicines are exempt. As per Clinical Establishments Act, 2010, the following systems of medicine are recognised systems of medicine:

  • Allopathy

  • Yoga

  • Naturopathy

  • Ayurveda

  • Homeopathy

  •  Siddha

  • Unani

  • Any other system of medicine that may be recognized by Central Government.

Here Para-medics means- trained healthcare professionals, for example nursing staff, physiotherapists, technicians, lab assistants etc. They are accountable for their services when provided independently. Services by them in a clinical establishment would be in the capacity of employee and not provided in independent capacity and will thus be considered as services by such clinical establishment.

Authorized medical practitioner  means a medical practitioner registered with any of  the  councils of the recognized system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India as per any law for the time being in force..

If the self made medicine sold by the center falls under above recognised system of medicine, then the services will not be taxable

Dear Mr santhosh

In Simple, if the Doctor is working as employee in a hospital or nursing home it is not taxable as service definiton excludes employee and employer relation

If the doctor have its own practice he is eligible for exepmption under 25/2012 provided it satisfies all the conditions laid down i.e Authorized medical practioner and recognized estbalishment and systenm of medicine as said by Mr CA Mukesh

what about chargeability of service tax on dentists??

The normal services of a doctor in treating patients are all excluded.

However a few doctors who have incomes such as:

1. Practice in looking goods clinic not related to disease.

2. Income from Immovable property let out for non residentialk use.

3. Referral fee for using stents. ( marketing / business auxiliary service)

4, Referral fee from diagnostic centres.( same as above)

5. Referral fee from the drug stores in areas ( same as above)

6. Engaged in any other service activity which is taxable.

Are liable for ST subject to their eligibility for Rs. 10 lakhs exemption.

Further Doctors carrying on profession who take advice from consultants/ avail services for their profession from person outside India could be liable to ST without any exemption as others under reverse charge mechanism.

If a partnership firm having four partners (two are doctors and two are not doctors) is running polyclinic wherein two doctors are running their healthcare services on proprietorship basis and paying rent to the partnership...then whether the rent received by partnership firm is liable to collect GST on the rent .....if so then how the doctors can pass on this GST to patients because healthcare services is totally exempted. The partnership firm also running healthcare services to some extent by hiring some professional doctors. 

is dermatologist providing services in his own premises (partnership firm) is liable to service tax 

Originally posted by : sarika
	is dermatologist providing services in his own premises (partnership firm) is liable to service tax

I have the same doubt? Can someone clarify it?