Service tax on insurace commission

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2016 Dear All
i am a general insurance agent and i am working with 2 insurance company. in 1`st company as a irda agent and 2`nd as a referal agent in both company my singal PAN IS used.
last financial year my commision from 1`st company RS.500000 and from 2`nd company RS. 1700000.
my 2`nd company commission is more than 10 lakh so company tell me to make a Registration in Service tax Department.and i have done the same.2`nd company agree to pay service tax but 1`st company is saying there is no any liabilty of service tax .
So. please any one can tell me what is the roll of service tax liabilty in this case.

thank:

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
Follow

14 April 2016 Insurance agent service are taxable under reverse charge mechanism. Means that that company need to pay service on the amount paid to you u r not liable to pay service tax.that is the reason why ist company not paying u service tax as u r not liable to pay service tax

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok