INSURANCE AGENT

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2010 Pl. clarify, whether Insurance agents (LIC/GIC)are covered under service tax, if yes then under what conditions

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 February 2010 Yes. Insurance agents are covered under service tax As Service "Insurance Auxiliary services" Sec.65(55)

Insurance agent is employed by the Insurance company to solicit insurance business and receive commission from the Insurance company for services rendered by him

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2010 Does It mean he has to pay the serv. tax out of commission received from Ins. Co. or he has to raise bill on Ins. Co. for serv. tax. Pl clarify

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 February 2010 It dose not mean that, In case of insurance agents As per service tax rules, responsible person paying service tax is the Insurance company who appoints the Insurance agent

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2010 Does it mean Insurance company will be deducting the serv. tax out of commission payable