Service Tax on Health Care

This is with reference to budget announced and Finance Bill produced by Finance Minister of India in the Lok Sabha. In his Budget speech Mr. Finance Minister announced that Hospital having as whole are part, centralized air conditioning and more than 25 in patient facility will be in Service Tax net.

Chapter V of finance bill defines clinical establishment.

We a well known group of Industries in India, having two health care establishments, wants to know your opinion regarding whether we will be covered in the above said insertion in the finance bill? Whether Service Tax will be applicable on us? Which establishment will be covered and which will not be covered and on what grounds?

Details of our health care institutes are given below.

1. Nature Cure Institute-

We have a Nature Cure Institute. In which we provide accommodations also to the patients. Many of these accommodations are air conditioned through room air conditioner but we do not have any centralized air conditioning facility. Number of beds are more than 25. There is no any allopathic, unani, ayurvedic, or homeopathic system of medicine is being followed.

2. Charitable Hospital-

We have a charitable hospital in which we provide treatment to weaker section of public free of cost or at concessional charge. Accommodations are not provided in this hospital. Allopath is followed as a system of medicine in this hospital. Diagnostic services have also been provided in this hospital.  No Centralized Airconditioning.