Service tax applicability on revenue sharing agreement between hospital and icu medical service provider

Hi syed,

Section 66b is charging section of finance act,1994,which provides that there shall be levied a service tax at the rate of 15% on the value of all services,other than those specified in negative list,provided or agreed to be provided in the taxable territory by one person to another for consideration and collected in such manner as may be prescribed.

in ur case icu unit which is different unit  providing service to hospital fall within ambit of definition of service tax.

Hello rahul mishra,

ICU is providing service to the patients and in return patients are making payment to hospital. As per Mega exemption list, any health care services provided by clinical establishment are exempt from service tax. so income source is the same i.e. from patients. so my question is whether 85 % income distributed by hospital to ICU (pvt ltd co.) is taxable or exempt under S.Tax. provide any Case law if possible. Thank you.