Service Tax For Doctors

Sunday, January 07, 2007 Dr. Vishaal Bhat 0 Comments

I think it is a ridiculous idea to impose service tax especially on lawyers and doctors. It will turn out like what value -added tax turned out to be with the burden being shifted on the consumer — in this case, the litigant/patient. Medicine and legal advice will only become more expensive since there is no person who will not hike up his fee in order to cater this requirement of the government. Thanks to this, both litigation and medicine will go out of reach of the common man.

Another practical problem that will arise especially for small-time advocates and doctors is that they will have to spend more to calculate the service tax to be levied. Most of them do not have the infrastructure and the question of accounting staff is ruled out. Hence, they will rely on professionals for the same and in the bargain end up spending more. Do you think that they will not shift this burden too on the customer? All these factors will contribute to reduction in productivity and quality. Worse, the doctors and lawyers will insist on cash payments from the customer with a view to avoid service tax. If this trend creeps in then I am sorry there will be no meaning in the government insisting on levy of service tax.

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