service tax apply on cashless facility provide by hospitals?

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Vijay Parmar

Vijay Parmar (Querist)
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07 July 2010 hello sir,

service tax apply on cashless facility services provide by hospital ?????

plz reply me????

Shyam Lal Naik

Shyam Lal Naik (Expert)
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07 July 2010 You are right. Service Tax is applicable on payment made by the insurer directly to the hospital(ie. Cashless treatment).

If the insurer reimburses the expenditure to the patient, than there is no service tax. In this case, the hospital raises the bill on the patient.

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