director liable to service tax, Service Tax

[ANKUR SINGHAL]

in case of hospital which have five director, all the director are doctor & hospital paid huge amount of professional fees to director for service provide by director, but service tax excempt in  hospital.

So in that case service tax liable to hospital on fees paid to director.

Please clarify that issue

Posts / Replies

[Seetharaman K C]

The services provided by an Authorised  Medical Practioner in his capacity as a Medical Practioner is covered under exempted services. The area which is covered under the reverse charge mechanism as per Notification no 30/2012 dated 20-06-2012 is in relation to services provided by a director of a company to the company in the administration of the company and also does not cover employee directors. Please note that the basis of charge in this case is different and the nature of service rendered is different.