CA NeWs Beta*: SERVICE TAX EXEMPTION TO BIO MEDICAL WASTE TREATMENT FACILITIES

Search This Site

Wednesday, August 20, 2014

SERVICE TAX EXEMPTION TO BIO MEDICAL WASTE TREATMENT FACILITIES

EXEMPTION TO BIO MEDICAL WASTE TREATMENT FACILITIES

Bio Medical Waste Treatment Facilities shall be exempt from Service Tax under entry 2B of Notification No. 25/2012-ST as amended.
Services provided by operators of the common Bio-medical Waste Treatment Facility to a Clinical Establishment by way of treatment or disposal of Bio-Medical Waste or the processes incidental
thereto are exempt from Service Tax.

Vide Notification No. 06/2014-ST dated 11.07.2014 a new entry relating to the services provided by operators of the common Bio-Medical Waste Treatment Facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental to such treatment has been inserted w.e.f. 11.07.2014. These services provided to clinical establishment are exempted from levy of Service Tax w.e.f. 11.07.2014 only.

Services provided -

by operators of the Common Bio-medical Waste Treatment Facility
to a clinical establishment
by way of-
treatment or disposal of bio-medical waste or
the processes incidental thereto,
would be exempt from service tax.

With industrialization and technological advancement, it is necessary to make proper measures and regulations as regards effective disposal and treatment of waste. Further, the waste that is generated from clinical establishments is more importantly required to be effectively disposed of as it is a waste that is capable of ruining the environment with incurable diseases which are highly communicable and may prove to be disastrous. Therefore, providing service tax exemption to operators of Common Bio-medical waste treatment facility is a appreciable step taken by the government that is for the benefit of public or say humanity at large.

Biomedical waste is waste that is either putrescible or potentially infectious. Biomedical waste may also include waste associated with the generation of biomedical waste that visually appears to be of medical or laboratory origin (e.g., packaging, unused bandages, infusion kits, etc.), as well research laboratory waste containing bio-molecules or organisms that are restricted from environmental release. As detailed below, discarded sharps are considered biomedical waste whether they are contaminated or not, due to the possibility of being contaminated with blood and their propensity to cause injury when not properly contained and disposed of. Biomedical waste is a type of bio-waste.

Disposal of this waste is an environmental concern, as many medical wastes are classified as infectious or biohazards and could potentially lead to the spread of infectious disease. Biomedical waste is generated from biological and medical sources and activities, such as the diagnosis, prevention, or treatment of diseases. Common generators (or producers) of biomedical waste include hospitals, health clinics, nursing homes, medical research laboratories, offices of physicians, dentists, and veterinarians, home health care, and funeral homes.

Bio-medical waste may be solid or liquid. Examples of infectious waste include discarded blood, sharps, unwanted microbiological cultures and stocks, identifiable body parts, other human or animal tissue, used bandages and dressings, discarded gloves, other medical supplies that may have been in contact with blood and body fluids, and laboratory waste that exhibits the characteristics described above. Waste sharps include potentially contaminated used (and unused discarded) needles, scalpels, lancets and other devices capable of penetrating skin.

It is well established fact that there are many adverse and harmful effects to the environment including human beings which are caused by the “Hospital waste” generated during the patient care. Hospital waste is a potential health hazard to the health care workers, public and flora and fauna of the area. The Government of India specifies that Hospital Waste Management is a part of hospital hygiene and maintenance activities. This involves management of range of activities, which are mainly engineering functions, such as collection, transportation, operation or treatment of processing systems, and disposal of wastes.

The services provided by the persons or institutions for bio-waste management is a necessity for better environmental control. As bio-medical waste management is essential requirement for welfare of human being and for the country as a whole, the service provider of the said service should not be covered under the head of taxable services and hence this exemption.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
For mobile version of this site click here


News Archive

Recommended Post Slide Out For Blogger