Health care services - Service Tax Practice Manual / Ready Reckoner - Service Tax

Chapter 2 Health care services (W.e.f. 1.7.2012) Scope of Exempt Service:- Notification no. 25/2012 dated 20.06.2012 From 1 st july 2012 to 31 st march 2015 2. Health care services by a clinical establishment, an authorised medical practitioner or para-medics From 1 st APRIL 2015 - Notification no. 06/2015 - Dated 1-3-2015 w.e.f. 1st April, 2015) 2. (i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics (ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in above Amending Notes:- Hitherto, any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment is exempt from Service Tax. The scope of this exemption has been widened to include all ambulance services. - Circular dated 28.2.2015 Health care services will not cover hair transplantation cosmetic or plastic surgery except when it is for reconstructing the anatomy or functions of a body or restoring the functions of a body. Unrecognized medical practitioner such as local Vaids etc. will not be covered in this entry. Meanings and Definitions: 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. clinical establishment means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system or medicines in India, or a place established as an independent entity or a part of an establishment or carry out diagnostic or investigative services of diseases. 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. ( See Notification no. 25/2012 dated 20.06.2012, effective from 01.07.2012 Notification no. 06/2015 - Dated 1-3-2015 , effective from 01.04.2015) Clarification by the Board (Taxation Guide - Guidance Note - 7 - Exemptions dated 20.06.2012) 7.2.1 Are all health care services exempt? No. only services in recognized systems of medicines in India are exempt. In terms of the Clause (h) of section 2 of the Clinical Establishments Act, 2010, the following systems of medicine are recognized systems of medicine: Allopathy Yoga Naturopathy Ayurveda Homeopathy Siddha Unani Any other system of medicine that may be recognized by central government 7.2.2 Who all are covered as paramedic? Paramedics are trained health care professionals, for example nursing staff, physiotherapists, technicians, lab assistants etc. 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. Similar services in independent capacity are also exempted.