Services provided for maintenance of medical records of employees of a business entity:-
Service Tax came into force with effect from 1st July, 1994, besides Jammu and Kashmir State all states in India are levied under Service Tax. Presently the rate of service tax is 10%+ 2% education cess on the amount of service tax.
It is a form of indirect tax imposed on specified services. The main objective to levy the tax is to reduce the level of taxation on manufacturing and trading services, and providing relief to the government.
Business Organization maintain employees medical records which is used to ascertain their efficiency in job,promotion,appraisal etc., and also to know the status of their health. Nowdays this service is outsourced for a price, these records are either maintained by the designated hospitals or independent agencies. This service is now brought under the Service Tax.
Finance Act, 2010 received an acknowdlgment from the President on 8th May,2010 and eight new services had been brought under service tax with effective from 1st July 2010, one of them being Maintaning of Medical Records of Employees.