Service tax levy or applicability

Originally posted by : CA Sanjay Baheti
	whether a Medical Profession is subject to Service tax or not. If the same is covered under Service tax ,then in which Taxable services it is needs to be registered with ST Dept if taxable Value of Services exceeds the prescribed basic Limit limit i.e. Rs.9 to 10 Lacs during the previous year. Please reply at the soonest.

AS PER MEGA EXEMPTION NOTIFICATION NO.  25/2012-ST, DATED 20.06.12, ENTRY NO. 2, health care services by a clinical establishment, an authorised medical practitioner or  para-medics; are exempted from the whole of the service tax.
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"clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;
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“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;
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“authorised medical practitioner” means a medical practitioner registered with any of  the  councils of the recognised system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;
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Only services in recognized systems of medicines in India are exempt [Para 7.2.1 of  The Guidance Note titled "Taxation of Services : An Education Guide", dated 20-6-2012 issued by TRU, CBEC]

In terms of the Clause (h) of section 2 of the Clinical Establishments Act, 2010, the following systems of medicines are recognized systems of medicines:

> Allopathy

> Yoga

> Naturopathy

> Ayurveda

> Homeopathy

> Siddha

> Unani

> Any other system of medicine that may be recognized by central government
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Scope of Paramedics [Para 7.2.1 of the above mentioned guidance note]

Paramedics are trained health care professionals, for example nursing staff, physiotherapists, technicians, lab assistants etc. 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. Similar services in independent capacity are also exempted.