Service Tax on Medical services

One Manufacturing company ( Say ABC Ltd ) out source its medical services to another company ( Say ZZZ Ltd ).

Now ZZZ ltd inturn hire doctors for ABC ltd and provides services and issue the bill to ABC ltd. they are registered under service tax  catagory " Man power supply & recruitment Agency"

but since the medical service is exempt from Service tax, is ZZZ ltd is entitled to charge service tax ?

 

Replies (6)
I think it will not attract
If ABC Ltd issues a bill only for their commission ofr arranging doctors, then it is a straight forward case of Manpower Recrutiment & Supply. But If ABC Ltd raises an all inclusive bill for medical services w/o indicating services seperately, then they are rendering medical services and therefore no service tax will be applicable. This view is prima facie as the agreement is not available
service tax is charged on service bills raised by the company inspite of medical profession is exemted from service tax.

IS MEDICAL CHECK-UP SERVICE GIVEN OB BEHALF IS CHARGEABLE TO SERVICE TAX?

The service rendered is not a medical service perse. It is in nature of Manpower Services and has nothing to do with the service that the manpower arranged will give. Manpower Service provider arranges people on salary basis also. You do not say that they are getting salary.

Medical service may not be taxed but if a doctor gets a commission from another doctor for referring a patient, that commission is taxed under business auxiliary service.

Originally posted by :Aalok
" One Manufacturing company ( Say ABC Ltd ) out source its medical services to another company ( Say ZZZ Ltd ).
Now ZZZ ltd inturn hire doctors for ABC ltd and provides services and issue the bill to ABC ltd. they are registered under service tax  catagory " Man power supply & recruitment Agency"
but since the medical service is exempt from Service tax, is ZZZ ltd is entitled to charge service tax ?
 
"


 

 

"ABC" COMPANY IS MANUFATURER OR SERVICE PROVIDER ?

 ABC COMPANY IS OUT SOURCING THE JOB TO "ZZZ"

 

AGAIN "ZZZ" IS GIVING MAN POWRER SERVICE TO "ABC"

 

OTUSOURCING "ABC" TO "ZZZ" AGAIN "ZZZ" TO (MAN POWER SERVICE)  "ABC" IS SOMEWHAT CONFUSING

 

STILL "ZZZ" CAN CHARGE SERVICE TAX TO "ABC" IF HE PROVIDES SERVICE IN MAN POWR CATAGORY

.

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