Is value Added Tax payable by mission Hospital?
As per sales tax law, tax is payable only if a sale of goods/commodity is involved. If there are no sales, no tax is payable. As per General Sales Tax Act, the Nursing Homes/Medical professionals who dispense medicines / drugs to the patient directly need not pay any Sales Tax because it does not constitute ‘Sales’. In VAT laws, Repeal and Savings provisions are provided which states “such repeal shall not affect the previous operation of said Act or any right, privilege obligation or liability already acquired”. That means the privilege enjoyed under the provisions of General Sales Tax Laws can be enjoyed in VAT also. Therefore, an Hospital which dispenses medicines / drugs directly to the patient need not pay any Tax under VAT.
