hospital services

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purnima (Querist)
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29 June 2010 sir,

what is the rate of service tax on hospital services. on what components is service tax payable. There is already luxury tax on room rent. do we have to pay service tax on this room rent. if so will it be including LT or Excluding LT. Thanks in advance. BTW, ours is corporate hospital.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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29 June 2010 Rate is 10.30%

The amount is payable on gross amount charged in terms of Sec 67.

Since room rent is a part and parcel of the medical treatment, it shall also be included.

In view of absence of specific exclusion(like works contract service), LT shall be included.

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