Service tax charge by hospitals

We are employer (business entity:- Company)
One of Our paneled Hospital is charging service tax on us on all tests , consultancy fee, OT charges etc (excluding medicine and
consumables) provided to our employees.

Kindly advise whether service tax charged by hospital is correct or not as Sec 65(105) (zzzzo) propose payment in relation to Health check up and preventive care.

Please also advise whether we can avail cenvat credit of the same or not


Replies (3)

 

Yes  you can get avail credit

Section 65(105)(zzzzo) of Finance Act 1994 is made w.e.f. 01.07.2010 as per which Service Tax is payable by any hospital, nursing home or multi-specialty clinic,—

  • (i) to an employee of any business entity, in relation to health check-up or preventive care, where the payment for such check-up or preventive care is made by such business entity directly to such hospital, nursing home or multi-specialty clinic; or
  • (ii) to a person covered by health insurance scheme, for any health check-up or treatment, where the payment for such health check-up or treatment is made by the insurance company directly to such hospital, nursing home or multi-specialty clinic;

But in the Memorandum explaining the provisions of the Finance Bil 2010, health check up undertaken by hospitals or medical establishments for the employees of business entities are covered by Service Tax

Yes ,u can avail service tax credit for above ..........

Thanks for reply

But please confirm whether Service tax charged by hospital on all services (tests , consultancy fee, OT charges etc ) is correct or not

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 08 August 2026
CA Articleship

RSAG & CO LLP

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 04 August 2026
Article Trainee

Prish Consultancy LLP

New Delhi

CA Inter

View Details
Company
Featured 04 August 2026
Chartered Accountant

KayOne Consulting

Chennai

CA

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
FOLLOW
US ON