05 June 2010
Dear Sir, Please consider the following example: An Individual Doctor who is referring patient to some other hospital and deriving a Referral fee. During the year ended his referral fee income 12,00,000/-.. Query: 1. Whether Referral income is liable for service tax? 2. If Yes , Whether it is a Business Auxillary Service?
07 June 2010
The fee maybe liable considering that the health service are provided by the hospital. However the question would be whether the same is a business or not.
Lately hosiptal/ health care is being perceived as a business. If so then there is liability beyond 10 lakhs in the first year and from re.1 thereafter.