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)
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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

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