Authorised service provider and insurance service

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shefali (Querist)
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24 December 2013 hello everyone,
my client runs a bajaj showroom .He is an authorised service provider and pays service tax on such service .He also started providing insurance service .Is he liable to get this service of insurance registered when receipts of both the services in total are less than 9 lakhs ... if valuable of taxable services exceed 9 lakh , how will he be able to avail exemption ?

Ankit

Ankit (Expert)
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24 December 2013 Dear Shefali,

your client is not required to register himself, since he is providing insurance agency services.

this is covered under the Reverse Charge Mechanism and thus, the insurance company is liable to pay ST on the commission amount and not your client.

Thus, there is no requirement of registration.

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shefali

shefali (Querist)
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24 December 2013 thank you

shefali

shefali (Querist)
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24 December 2013 my client also provides finance service ...should he get himself registered for such service if aggregate value of taxable service is less than 9 lakhs and how will he get exemption if such aggregate value taxable service( finance + authorised service agent) is 12 lakh

Ankit

Ankit (Expert)
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24 December 2013 finance service as in?? which kind of?? he gives the loans or arranges for the loans??

shefali

shefali (Querist)
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24 December 2013 bajaj finance

shefali

shefali (Querist)
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24 December 2013 commission on bajaj finance

Ankit

Ankit (Expert)
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24 December 2013 I am asking, is your client giving actual loans, or is arranging for the loan with Bajaj Finance??

it seems, he arranges the finance from Bajaj Finance...hence, he will become a DSA and thus, Service Tax is payable by him in the commission amount earned by him from the company

Ankit

Ankit (Expert)
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24 December 2013 it seems, he arranges the finance from Bajaj Finance...hence, he will become a DSA and thus, Service Tax is payable by him in the commission amount earned by him from the company

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