Please Help: service tax on life insurance agent services
Posted Date : 10-May-2012 , 09:34:38 am | Posted By: Sharad
Category :
Service Tax | Answers :
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Comments :
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WHETHER THERE IS ANY SERVICE TAX LIABILITY ON LIFE INSURANCE AGENT
SECONDLY IFLIFE INSURANCE COMPANY CAN RECOVER THE SERVICE TAX IN THE NAME AS SERVICE CHARGES. |
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Answers:
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 Answer by: Rishabh Upadhyay |
| No, Life insurance agents are not liable to service tax unless they are working on franchisee basis and raising a bill on the insurance company and also the aggreggate billing amount exceed Rs 10 Lacks
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| Answer by: |
| (1) Insurance services are provided by Life Insurance Agent to Insurance Agency. In terms of Rule 2(1(d) of Service Tax Rule, Liability to pay service tax in case of insurance service shall be on service receiver i.e. insurance company not on insurance agent. (2) Insurance company may deduct the amount of service tax from commission payable to agent depending on the terms of agreement.
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| Comments |
| Posted By : Amit Lath |
28-May-2012, 07:06:54 |
| 1) Insurance agent provides service to the insurer. Service of such agent is covered under reverse charge method. Under reverse charge method service receiver is liable to pay service tax .Furthermore High court has held that unless the agreement specifically provides for recovery of such taxes,such taxes cant b recovered from the service provider.Delhi HC has also held that s.tax being Indirect tax must be borne by the service receiver. |
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| Posted By : Rishabh Upadhyay |
10-May-2012, 03:30:10 |
| Life insurance agents provide services to mass public and the reciept is from the Life Insurance company. Also no bill is raised by the insurance agents on the insurance company. So no service tax liability will be there on the LIC agents. and second part of your question is not clear, kindly provide more light on the same. |
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