13 July 2010
Yes as of now... This lead to double taxation... VAt and service tax.. very soon it will be taken out of it. ervice providers can look forward to availing of the benefit provided by Notification No. 12/2003-ST dated 29th June, 2003, in terms of which, a service provider selling goods as part of the service provider, is entitled to claim an exemption from the service tax levy, on the value of the goods sold as confirmed by documentary evidence. However, we should expect the Department to work towards refusing to extend the benefit of this Notification to the film distribution and health care sector on some pretext or other. Once these proposals are confirmed in the statute book, service providers and especially the hospitals and clinics, would need to put in systems and procedures to bifurcate the value of the medicines and goods sold by them so that, the benefit of Notification No. 12/2003 can be taken.
CAclubindia
