Service tax on Doctor's Consultation fees and Registration Fees

[Gujrani And Co. Chartered Accountants]

Dear Members,

A medicine dispensing centre provides facilities for doctor consultation and dispensing of self made formulations to patients on doctor's prescription. It charges for Registration Fees, Medicine Cost and Doctor's Consultancy (all three shown separately on the bill) from the patients. VAT is charged on cost of medicine. The doctors are paid on fixed monthly basis irrespective of the number of patients seen by them.

Is Service Tax Applicable on Registration Fees and Doctor's Consultancy Charges, and if so, under which Head of Service.

Kindly give your valuable inputs.

With Best Regards

CA. Vikash Kumar Surana

09831093750

[shashi chirania]

Dear Mr. Vikash

 In my view, these services are not taxable since they are covered under negative list.

As per Mega Exemption 25/2012 dated 25.04.2011, Service Tax dated 20.06.2012, Ministry of Finance Government of India “Health Care Services at clinical establishments, an authorized medical professional or paramedics is exempted under service tax.

The clinical establishment as per Notification no. 30/2012 would mean any hospital, nursing home, clinic, sanatorium or any other institution by whatever name called in India. It could be a place established as a part of an establishment or any private diagnostic centre like x-ray clinic, pathological laboratory or any diagnostic or investigative center. This definition is  as per Clinical Establishment Act 2010.

“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

Only services in recognized systems of medicines are exempt. As per Clinical Establishments Act, 2010, the following systems of medicine are recognised systems of medicine:

  • Allopathy

  • Yoga

  • Naturopathy

  • Ayurveda

  • Homeopathy

  •  Siddha

  • Unani

  • Any other system of medicine that may be recognized by Central Government.

Here Para-medics means- trained healthcare professionals, for example nursing staff, physiotherapists, technicians, lab assistants etc. They are accountable for their services when provided independently. 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.

Authorized medical practitioner  means a medical practitioner registered with any of  the  councils of the recognized system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognized system of medicines in India as per any law for the time being in force..

If the self made medicine sold by the center falls under above recognised system of medicine, then the services will not be taxable.

Regards,

CA Shashi Chirania

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[cours...@gmail.com]

Sir my relative  is providing Nutritionist services  Women who are pregnant and other patients with various  diseases as a qualified dietitian. She has been offering her services to patients at a hospital. Billing is in the name of the hospital and her revenue share is received on a monthly basis.

She is planning to open up an independent practice (Outside of a hospital) soon. My query to you is  whether her services  would come under the negative list  of service tax by way of two definitions-

I believe that  there  is an exemption on Paramedics (As mentioned in the Service Tax education guide)- Includes Nursing staff, physiotherapists, technicians, lab assistants etc. Services by them in and outside a clinical establishment are exempt.

Also, could you please let me know if she starts some kind of a weight loss or general well being program, can we split our revenues into exempt and service tax chargeable services or is that not required?

 I hope you can help .

Regards 

Anil Sharma 

[in...@justarchon.com]

Hello Sir,

Whether suggestion services provided to any hospital are liable to ST or not?