As per notification, read:
"The tax on the above mentioned health service would be payable only of and to the extent the payment of such medical check-up or treatment etc. is made directly by the business entity or the insurance company to the hospital or medical establishment. Any additional amount paid by the individual (i.e. the employee or the insured, as the case may be) to the hospital would not be subjected to service tax. This is to ensure that an individual is not required to pay a tax for which he cannot take credit. [ vide M.F.(D.R) letter D.O.F.No.334/1/2010-TRU dated 26/2/2010.]"
As per the terms should IIM be considered as BUSINESS ENTITY?
If no, service tax should not be charged.
Dhirajlal sir ,
I want to know that the amount paid by insurance company to a hospital against medical claim by patient for his/her treatment is taxable or not and Who is liable to pay tax hospital or insurance company
@ Yogesh
If your query is for service tax liability over payment made by insurance company to hospital::
Hospital is service provider; Insurance company is service receiver; & the service tax is charged by hospital to insurance company over the bill raised for treatment of insured!!
detail of bill is not provided just total amount is shown in the bill .Insurance company made payment after TDS deduction to hospital . Here Hospital is liable or not as getting amount more than 10 lac in a Financial year
Yes, hospital is liable for collection of service tax. If not seperately billed, it has to be assumed service tax is inclusive.
@ Dhirajlal Rambhia Sir,
Now, the hospital has written to us for reimbursing the service tax portion on the billed amount. I am replying to them by giving reference to entry 2 of the exemption list that health care services provided by a clinical establishment are exempt. Please guide if I will be right in doing so.
Thanks and regards,
can i have a talk over Phone .Please tell me any contact no
@ Dilpreet:
Here hospital may be considering the institute as Business Entity.
As only the health care services provided to patients are tax free. So, the matter is to be sorted out with Service tax department, for the clarification about the educational institutes are not a business entity and should be tax free.
There is no notification regarding service tax to be paid by hospital on the amount received from medical insurance company so how to convince them that they are liable to pay service tax on that amount
@ Yogesh: The details of notification is already given above, please read it.
Actually, hospital has to collect the ST from insurance company, an then pay to treasury, which the hospital doesn't seem to be aware of. And thus the liability to pay the ST has been carried over the Hospital.
Thank you Sir.
Then sir i can issue service tax liability to hospital on amount received as medical treatment from insurance company ....as hospital charging gross amount and service tax portion is not showing in bill. please send notification link
thnxx
| Originally posted by : Yogesh Goyal | ||
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Then sir i can issue service tax liability to hospital on amount received as medical treatment from insurance company ....as hospital charging gross amount and service tax portion is not showing in bill. please send notification link thnxx | ![]() |
Depends upon the arrangement between Hospital & Insurance company.
Attached herewith the D.O.F. No. 334/1/2010 - TRU dated 26/02/2010. for your reference. Do go through annexure A in it, for more details.
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