New Service Tax Notification No. 24/2010-Service Tax dated 22.06.2010
The Central Government has introduced service tax on cashless services in Hospitals & Nursing Homes for Health checkups & treatments w.e.f 01.07.2010 as per Notification No. 24/2010-service Tax dated 22.06.2010.
Keeping in mind the above, hospitals will henceforth be required to add service Tax @ 10.3 % to the hospital bill on all bills for cashless treatment generated on or after 1st July, 2010.
Since service Tax liability will be borne by the Insurance Company, the amount towards service tam will be authorized by the insurance provider as a part of the Authorization Letter amount.
Our updated release for Insurance management is fully compliant with the new regulations.