Healthcare professionals are exempted from tax. If a startup, providing telemedicine platform in healthcare can also be exempted from taxes. Or should it pay service tax? The startup has no possession of medical equipment or has any certificate from MCI. we provide a platform(website) for patient and doctors interaction. Should we pay service tax? If so, how much? we charge 500 from patients and give 450 to doctors and rest as our commission. So if we need to pay service tax, is it applicable on 500 or 50? Thanks in advance
Hello Sir,
As per the details provided by you, it appears that you act as bridging gaps between potential clients and doctors and charge a service fee.
In such cases, Service Tax is applicable and it is to charged on the Service Fee which in your case appears to be Rs.500/-.
Hope this clarifies your query.
Please feel free for any further clarifications.
Thanking You.
Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP, CERT FAFD.
Thanks Mr. Rohit for the reply. In that case, if we show that we charge , say Rs 100 as our charges and 400 as doctor's charges, then we will have to pay service tax on Rs 100? Please mention if we need to pay 14.5% Service tax or is it more? Thanks Krishna
Dear Krishna,
Yes you are correct, if you do it that way and show that you are receiving 400 on behalf of the doctors, then you need to pay service tax only on Rs.100/- which is your fees.
The Rate of Service Tax is 14.5%.
Trust this clarifies your query.
Please feel free for any further clarifications.
Thanking You.
Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP, CERT FAFD.