Service tax on insurance advisor' commission

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MANISH (Querist)
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19 August 2013 My friend is an insurance advisor
he sell the insurance policy and against it he get commission from insurance company

the company recently give him commission after deducting service tax 12.36%

so finally we have question that

can this service tax is refundable or not ?
if yes then how ?
the premium commission gross is just rs.5500/- p.a. till they have right to cut service tax out of it??

CA Suresh Jain

CA Suresh Jain (Expert)
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20 August 2013 As per notification 30/2012(RCM), it is the responsibility of the recipient of the service i.e. Insurance Company to pay service tax. The deduction from amount of commission payable to you depends on the agreement between you and the Insurance Company. You can not avail CENVAT

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

MANISH

MANISH (Querist)
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20 August 2013 ok thank you for help
another question is

service tax basic exemption limit is i think 9 lacs so it is not available in insurance commission??? just for knowledge
as i am in c.a. final in my till exp. i am never touch in service tax matter bcz we have no even single file of it and i want to learn service tax..

if possible pls guide me

MANISH

MANISH (Querist)
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20 August 2013 pls guide for above

MANISH

MANISH (Querist)
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20 August 2013 THANKS I READ THE NOTIFICATION 30/2012 BUT TILL I AM CONFUSE THAT BASIC EXEMPTION LIMIT IS APPLICABLE HERE OR NOT
IF NOT APPLICABLE THEN WHY???
AND IF APPLICABLE THEN HOW????

CA Suresh Jain

CA Suresh Jain (Expert)
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20 August 2013 Service tax is exempted, subject to the conditions as mentioned in 33/2012, up to the value of taxable service of Rs. 10 lakh in a F.Y.
You need to refer to 33/2012 for full detail. Where the value of taxable service exceeds Rs. 9 lakh the person has to get him self registered under service tax act

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

CA Suresh Jain

CA Suresh Jain (Expert)
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20 August 2013 notification 30/2012 is not an exemption notification.
The exemption of Rs. 10 lakh is not applicable to recipient of service and liable to pay ST under RCM

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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