Medical expenses are day to day becoming more costly. Do you need to pay service tax on health care services? No. Thanks to Central Government that it gave mega exemption to medical and para medical services.

service tax on health care services

Service tax on health care services:

According to section 66B of mega exemption notification no. 25/2012,

Health care services by a clinical establishment, an authorised medical practitioner or para – medics are included in mega exemption and this taxable service is exempt from whole of the service tax.

You can see it on following link

http://www.servicetax.gov.in/notifications/notfns-2012/st12-2012.htm

Note that para medical service is also included in exemption. So services which covered in para medical definition are also exempt.

Point 2.

Authorised medical practitioner meaning:

authorised medical practitioner” means any medical practitioner registered with any of  the  Councils of the recognised system of medicine and includes medical professional having the requisite qualification to practice in any recognised system of medicine as per any law for the time being in force. As per notification.

Who are included in exemption?

So there is clear exemption to services of MBBS, surgeons, nursing homes, physiotherapist or other medical professionals.

Ambulance services are fully exempted in budget 2015.

In recent budget 2015, fully exemption is given to ambulance services .

Service receiver and service tax:

Service tax on health care service is exempt no matter patient is resident or non resident of India.

Read about service tax changes in budget on this post.

Exemption to service tax on health care services has given bit relief to needy and poor people. I hope someday government will take steps to reduce prices of medicines and control high profits of pharma companies.