Service tax on medical services provided to students of educational institution

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Sir as i hv gone through the annexure ..it is clear that the hospital is liable to pay Tax on the amount received from Insurance company....Now as this notification is dated 26 feb 2010. Now question arises that as per negative list and mega exemption dated 20.06.2012  ....health care services are exempted from service tax . So still medical insurance service provided by Company is taxable ...yes  so i can say to hospital to pay tax on the same for the period 2010 to till date

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Sir as i hv gone through the annexure ..it is clear that the hospital is liable to pay Tax on the amount received from Insurance company....Now as this notification is dated 26 feb 2010. Now question arises that as per negative list and mega exemption dated 20.06.2012  ....health care services are exempted from service tax . So still medical insurance service provided by Company is taxable ...yes  so i can say to hospital to pay tax on the same for the period 2010 to till date

By Mega exemption the medical services were exempted to diect patients, but not to Business entity and insurance agency. Now a days all the services except those listed in Mega Exemption and Negative list are taxable.

So, if Insurance companies are not reimbursing the ST to be paid over the services, hospital will have to pay the same, when it exceeded 10 lakhs in any year.

@ Dhirajlal ji please also go through DOF No 334/3/2011-TRU DATED 28.02.2011 and its  Annexure -B  along with DoF 334/1/2010-TRU DT. 26.02.2010 ( provided by you) and 30/2011-  ST dated 25.04.2011  regarding STax on medical insurance policies .....my colleague says that it is not taxable at present ...prior 1.07.2012 it may be ....so please make it clear ...will be very thankful to you sir

I am attaching some clips 

Thanks for clarification. Though the clip is not clear, but I have gone trough the notification which clearly exempts the service tax on both insurance agencies and even business entities,

Government of India

Ministry of Finance

(Department of Revenue)

 

New Delhi, the 25th April, 2011

 

Notification No. 30/2011 - Service Tax

 

 

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service referred to in sub-clause (zzzzo) of clause (105) of section 65 of the Finance Act, from the whole of the service tax leviable thereon under section 66 of the said Act.

 

2. This notification shall come into force on the 1st day of May, 2011.

 

[F. No. 334/3/ 2011 - TRU]

So neither hospital nor Insurance company is liable to pay stax on health care amount  against  policy made to hospital ? 

So neither hospital nor Insurance company is liable to pay stax on health care amount  against  policy made to hospital ? 

Yes true, that's as per the referred notification.

@ Dilpreet: the same rule applies in your case too. No service tax on healthcare services from 01.05.2011, wide notification no.: 30/2011,  dated; 25/04/2011. 

Thanks again for the clarification.


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