sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« VAT (Value Added Tax) »
 Filing of online return for 4th quarter of 2017-18 extension of period thereof.
 No Cenvat credit admissible on outward transportation services from factory to buyer’s premises
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part

VAT collection drive against hospitals unfair'
July, 10th 2014

The Association of Healthcare Providers in India (AHPI) has sought the state government's intervention to stop the recent drive launched by the commercial tax department to collect VAT for medicines and implants provided to patients admitted in hospitals.

The AHPI's appeal, made in association with Indian Medical Association (IMA) and Federation of Indian Chambers of Commerce and Industry ( FICCI), comes after the commercial tax department conducted surveys on prominent hospitals throughout the state on June 30.

The written representation submitted by the AHPI to the state finance and health ministries and also to the chief minister's office, states that for the treatment given to patients admitted at hospitals, a consolidated amount is charged. Using the breakup of different charges given to patients, the authorities of the commercial tax department had been imposing tax on medicines and implants given to the patients during treatment.

In a major drive that surveyed the canteens and medical stores of 45 hospitals across Gujarat, the state commercial tax department detected tax evasion of Rs 10.54 crore and made recovery of Rs 74.81 lakh.

The representation by the AHPI further states that treatment of indoor patients at the hospitals is considered as taxable under the Service Tax Act and, therefore, it cannot again be subjected to VAT.

"Such inconsiderate imposition of VAT on hospitals will only increase the burden of charges on patients and other healthcare services," said AHPI secretary Neeraj Lal.

Officials of the commercial tax department maintain that though some of the canteen contractors and medical stores had been evading tax, many of them were unaware that they were supposed to pay tax on items and services they were offering.

"If a patient visits the OPD of a hospital and takes medicines, he is charged tax on the medicines and other services and that tax is deposited by the hospitals. However, in the case of the indoor patients, hospitals had collected the same taxes but some of them did not deposit it with the government," said a senior commercial tax department official.

The biggest tax detection was made at Vadodara where Rs 5.36 crore in unpaid taxes was detected at canteens and medical stores of the five hospitals surveyed. In Ahmedabad, 15 such hospitals were surveyed and from them Rs 60 lakh was recovered and another Rs 3.52 crore detected. Five hospitals are still under scrutiny.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions