Service tax applicability
Santosh Kr. Agarwal
(Querist) 20 August 2014
This query is : Resolved
Whether Service tax is applicable for A Doctor who work in a Hospital as a PROFESSIONAL on the post of Medical Director (M.D.)"NOT TREAT THE PETIENT". At present only TDS deducted from his Professional Fees.
Surrender K Singal
(Expert) 21 August 2014
As no service, other than as employee, is being rendered, ST may not be bothered about ! Why this querry ? TDS from salary itself defines his employment which may not attract ST !
T. Kalaiselvan, Advocate 
(Expert) 26 August 2014
No service tax for employees. If his salary is drawn as an MD, he is not liable for service tax.
Anirudh
(Expert) 26 August 2014
I slightly differ with the views of Mr. Singal.
Just because TDS is being deducted, that itself may not be proof enough that one is an employee.
Further more, in this case, it is said that the TDS has been deducted as for "professional". That means he is rendering professional services. If one is rendering professional services to the hospital, then the question comes whether service tax is attracted or not. That is the context.
It is not a simple query. Requires deep understanding of the exact arrangement before one could a legally tenable answer.
Santosh Kr. Agarwal
(Querist) 26 August 2014
Yes Anirudh Ji is right. The person is not an employee of the Hospital. He works as a professional in the Hospital. So The question remain open. TDS deducted as Professional Fee Income. Not Salaried Income. Because he worked only as a professional.
Anirudh
(Expert) 26 August 2014
Now the next question comes, as to what is the quantum of professional fee paid to the said professional during the financial year?
Does that professional render service elsewhere also?
Santosh Kr. Agarwal
(Querist) 27 August 2014
1. Professional Fee @ Rs.300000/- p.m. or can say Rs.36 to 40 Lacs per annum.
2. No that professional does not rendered service any where else.
Santosh Kr. Agarwal
(Querist) 27 August 2014
1. Professional Fee @ Rs.300000/- p.m. or can say Rs.36 to 40 Lacs per annum.
2. No that professional does not rendered service any where else.
Surrender K Singal
(Expert) 27 August 2014
Thanks, Mr. Anirudh; I considered the Doctor as Managing Director (MD) who could be an employee; But, it is Medical Director providing service as a professional, whose fee could be inclusive of ST, to be deposited by Service receiver.
