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Is service tax applicable to doctor

Santosh Nalawade (Practice) (355 Points)

03 February 2016

dear all, my client is doctor having receipts of more than 9 lakhs. Is this case falls under the ambit of service tax. If yes, what rate is applicable to him.

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14 Replies

CA Mukesh Choudhari (xyz) (153 Points)
Replied 03 February 2016

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

Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 03 February 2016

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

CA Sai Kiran Gajavalli (Self employed) (77 Points)
Replied 03 February 2016

If his services are in the nature of cosmetics or plastic surgery and not mentioned in the exemption list, he has to register himself with ST Department and charge service tax once his service revenue crosses Rs.10 lacs.

CA Rajshekhar (Chartered Accountant ) (50 Points)
Replied 03 February 2016

It's in the exemption list and not negative list.

1 Like

Nitin Gupta (Student CA IPC / IPCC) (193 Points)
Replied 03 February 2016

It is covered under s.no.2 of mega exemptions under 25/2012

cvravindra (Job) (61 Points)
Replied 03 February 2016

If the doctor satisfies the cretiria specified in mega exemption then he will be exempted from service tax

cvravindra (Job) (61 Points)
Replied 03 February 2016

If the doctor satisfies the criteria specified in mega exemption then he will be exempted from service tax

Aditya Sharma (finance advisory) (377 Points)
Replied 03 February 2016

what about chargeability of service tax on dentists??

CA Raha Sk (Professional) (150 Points)
Replied 03 February 2016

Dentist service also exempt from service tax

ashok kabdal (article) (107 Points)
Replied 05 February 2016

I think cosmatics & plastic surgery provoded by practicing doctor is taxable if the same service is provided not for curing n healing.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 05 February 2016

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.

gauresh (accountant) (26 Points)
Replied 12 July 2017

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.