Service tax on health insurance
Saket Gupta (Student CA Final ) (77 Points)
25 December 2015
At what rate service tax is chargeable on Health Insurance? is there any abatement?
Saket Gupta (Student CA Final ) (77 Points)
25 December 2015
Mayur Kashinpure
(Student)
(341 Points)
Replied 25 December 2015
Service Tax on health insurance's premium is chargable @ 14.50 % (current rate of Service Tax) of gross premium amount. There is no abatement for it.
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 25 December 2015
Agreed! its 14% Service Tax and 0.5% education cess. Also, certain insurance policies are exempted under clause 26 and 26A of notification no.25/2012 as amended from time to time.
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 26 December 2015
Sorry its 0.5% Swachh Bharat Cess, mis-typed as Education cess.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 26 December 2015
As far as health insurance is concerned, if the taxable service provider or manufacturer is paying for a group policy the full credit can be availed by the company
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