NEW DELHI: If the government has its way, you could soon be paying service tax on your hospital bill, rail tickets, several government services, capitation fee and hiring a marriage hall from the municipal agency.
A concept note floated by the finance ministry has proposed to exclude only a handful of services - education, funeral and farming activities from the tax net. The list of 27 segments that would be excluded from service tax also includes interest and dividend earned, religious services and betting and gambling.
In case of health, the finance ministry has given two options. One option is to exclude all services provided by clinical establishments with turnover under Rs 4 crore from the tax net. This means that apart from your medical bill at a large private hospital you will also have to pay service tax, which could be 10% of the total amount.
with thanks : times of India : link above for detailed news.
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