Registration of insurance agent under service tax
This query is : Resolved
06 May 2014
Dear Expert
Insurance agent receives commission from insurance company and service tax is also paid by insurance company as per reverse charge mechanism
Q1)Now commission received has crossed Rs 10 Lakhs, Is insurance agent require to get himself registered under service tax? even though he is not require to pay service tax since it is paid by insurace company.
Q2) if yes then under which category of service, insurance agent should get himself registered?
Insurance agent receives commission from insurance company and service tax is also paid by insurance company as per reverse charge mechanism
Q1)Now commission received has crossed Rs 10 Lakhs, Is insurance agent require to get himself registered under service tax? even though he is not require to pay service tax since it is paid by insurace company.
Q2) if yes then under which category of service, insurance agent should get himself registered?
06 May 2014
1. yes he is liable to get himself regsitered under service tax dept.
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07 May 2014
you are welcme abhijit..................
07 May 2014
Dear Tushar
as per section 69(1) Every person liable to pay the service tax
and 69(2) the notified person by CG i.e service reciver incase of reverse charge mechanism
are require to register
in case of insurance agent he is not liable to pay service tax and insurace company is liable to pay
then why agent should get himself registerd?
as per section 69(1) Every person liable to pay the service tax
and 69(2) the notified person by CG i.e service reciver incase of reverse charge mechanism
are require to register
in case of insurance agent he is not liable to pay service tax and insurace company is liable to pay
then why agent should get himself registerd?
20 July 2025
Hi! This is a good point about service tax registration under reverse charge.
Here’s the key explanation:
Section 69(1) says every person liable to pay service tax must register.
Section 69(2) says the notified person who is liable to pay tax under reverse charge must also register.
In the case of insurance agents, the agent is not liable to pay service tax — the insurance company pays the service tax.
Since the agent is not the person liable to pay service tax (either directly or under reverse charge), he is not mandatorily required to register under service tax.
However, sometimes agents may choose to register voluntarily if they want to avail input tax credit or for other business reasons.
The government may notify specific cases for registration, but as per the general principle, if you are not liable to pay service tax, you need not register.
Summary: Since the insurance company is the service recipient and liable to pay tax under reverse charge, the agent is not liable to pay service tax and thus no mandatory registration is required for the agent.
Here’s the key explanation:
Section 69(1) says every person liable to pay service tax must register.
Section 69(2) says the notified person who is liable to pay tax under reverse charge must also register.
In the case of insurance agents, the agent is not liable to pay service tax — the insurance company pays the service tax.
Since the agent is not the person liable to pay service tax (either directly or under reverse charge), he is not mandatorily required to register under service tax.
However, sometimes agents may choose to register voluntarily if they want to avail input tax credit or for other business reasons.
The government may notify specific cases for registration, but as per the general principle, if you are not liable to pay service tax, you need not register.
Summary: Since the insurance company is the service recipient and liable to pay tax under reverse charge, the agent is not liable to pay service tax and thus no mandatory registration is required for the agent.
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