The service tax on Insurance Premium is charged @ 10.3%. How ever in case of motor insurance no claim Bonus is given and in case group insurance, a portion of premium is refunded by way of adjustment against future Premium. In case of Group schemes the premium is paid by the trust set up by Companies. Thus If the premium under motor insurance is Rs 10,000, no claim Bonus is Rs 4000 & net premium is Rs 6000. Whether service tax is payable on gross premium of Rs 10,000/- or Rs 6000.. Similarly, in respect of Group Insurance Scheme covering employees of a Company through a separate irrevocable trust set up by the Company, the premium is charged on quarterly basis and adjustment of profit sharing is also done quarterly. Thus premium for first quarter is Rs 10 Lakhs, which is paid through irrevocable trust set up by the Company for the welfare of the Employees of the Company. The service tax in the first quarter is on premium of Rs 10 lakhs. How ever, in the second quarter, due to low no. of claims a portion of premium is refunded by way of adjustment against premium for second quarter. Thus the premium due in second quarter is also Rs 10 Lakhs. But 4 Lakhs of premium pertaining to first quarter is adjusted/ refunded by way of adjustment against premium due in second quarter. The actual amount of premium paid in second quarter is only Rs 6 Lakhs. Thus against a premium of 40 lakhs in one full year, the Trust is payng Rs 28 Lakhs of premium. Whether service tax is payable on Rs 40 Lakhs or Rs 28 Lakhs. Under what section of the service tax rules, we have to charge service tax on premium, where there is future adjustment of premium due to favourable claim experience. Whether any clarification from the Ministry are available. Please help

Sir,

we are having lodging with following tariffs PER DAY

NON AC ROOM RS.700/-
AC ROOM RS.1299/-
AC EXCUTIVE RS.1399/-
SUIT RS.2150/-

PLEASE KINDLY ADVISE US HOW TO COLLECT SERVICE TAX ON ABOVE SAID TARIFFS.

SRINIVAS

One of our client is a manpower consultant for overseas client. Against the specific requirement of Different catogary of Man Power to be placed for employment overseas, give adds in the paper and after selecting proper candidates and with the approval of the overseas companies and against their visa sends the man power abroad. On such services it receives service charges in foreign convertable exchanges which are now exceeding Rs.10 lacs, please inform the aplicability of service tax on receipt of such export of services where the payment has been received in foreign convertable exchange.

Office & Residential building constructed by a contractor for Hydro Electricity Generation Corporation. Is this construction work taxable under Service Tax Act? Please give details.
Thanks in advance.

sir,
we have taken a sub contract from X company they taken from State Govt Electrical Board in this issue on service tax we can eliagable for cenvat or not and what is the service tax rate?

A notification came that Service tax is payable on billing basis as on 1st July 2011, I want to know that what does the statement says? Is they are saying that whether you have received the amount of services provided or not you have to pay the service tax on the full amount billed?

We are consultancy eng. company.All income of our are subject to service tax.
1.Can we take credit of service tax paid on land line telephone,mobile,insurance premium etc.?
2.We also pay service tax on Goods Transport service,till 31.03.11 we have taken credit as machinery are transported from godown to site and back to godown.Used in relation to providing out put service.Can we take credit of GTA after 01.04.2011?
3.After point of taxation,is there is any set off/credit of service tax allowed for bad debts,less payment than invoice amount or non-payment till ST-3 return or till year end?

i hv applied service tax no. online but by mistake it register as Non Assesse.

plz give me suggestion.
thanks


i was fill "form for registration of Non Assessees"

In an Educational Institution providing school education upto class 12 hiring cab for carrying students & charging the transportation fees to students and the transporter is not charging the service tax & not paying the same , kindly advise who will pay service tax . The service provider or the educational Institution.

Thnaks & regards

Sir,

My question is who will liable to deposit the service tax if the contractor is not depsoiting the same & not charging to to employer.

In that case , whether the principal employer is liable to pay tax? Kindly advise.