MY FRIEND IS A DIRECTOR OF PRIVATE LTD COMPANY. ONE OF ITS BUSINESS IS TO COLLECT INSURANCE PREMIUM(VEHICLE/ GENERAL INSURANCE)ALONG WITH SERVICE TAX ON THE PREMIUM. THE COMPANY COLLECTS THE PREMIUM FROM THE INSURED AND REMIT IT TO THE COMPANY'S BANK ACCOUNT AND THEN TRANSFER THE SAME TO INSURANCE COMPANY.
FURTHER HE IS NOT GIVING ANY RECEIPT/ACKNOWLEDGEMENT TO THE INSURED FOR COLLECTING THE AMOUNT. BUT THE INSURANCE COMPANY IS GIVEN THE SAME TO THE INSURED.
IN THIS REGARD MY QUERIES ARE
1) ON SUBMITTING FORM ST-3 (SERVICE TAX) WHETHER THE WHOLE AMOUNT RECEIVED FROM THE INSURED (PREMIUM + SERVICE TAX) SHOULD BE SHOWN IN THE FORM (SL. NO. B1.1 - PAGE PAYABLE SERVICE). OR ELSE HE NEED TO SHOW ONLY THE COMMISSION THAT IS RECEIVED BY THE COMPANY FROM THE INSURANCE COMPANY?
2) WHETHER HE NEEDS TO COLLECT/REMIT ANY SERVICE TAX FROM THE INSURED/INSURANCE COMPANY FOR THE ABOVE TRANSACTION?
17 April 2015
1. In form ST-3 only the commission received by the company should be shown. 2. Service tax will be paid by insurance company under reverse charge for the above transaction.
Whether, 1) he needs to pay service tax on commission received from the insurance company. 2) he needs to issue any receipt/ acknowledgement to the insured for collecting the premium.
Is it an abatement or exemption? Please specify the notification no. along with serial no. in order to show the same in Form - ST 3 (Sl. No. A11.2 OR A12.2, Page Payable Service).
17 April 2015
NIL return can be filied by claiming exemption vide N/N-33/2012 dated 20-06-12 in the appropriate column and the taxable amount shall become zero.
17 April 2015
I modify my reply don't opt for N/N 33/2012.
You have to fill the amount in (c) (iii) of ST-3. Amount received as pure agent.
(c) Value on which service tax is exempt/ not payable (i) Amount received against export of service^ (ii) Amount received (Paid#) towards exempted service (other than export of service, i.e. (i) above) (iii) Amount received as/ (Paid to#) pure agent (Please see instruction).
17 April 2015
You should not choose any exemption or abatement option in the form. Choose to fill in the following part of form ST-3. F. Value of taxable service, service tax payable and gross amount charged: