Service tax on insurance premium - form st 3
This query is : Resolved
17 April 2015
DEAR SIR/MADAM
MY FRIEND IS A DIRECTOR OF PRIVATE LTD COMPANY. ONE OF ITS BUSINESS IS TO COLLECT INSURANCE PREMIUM(VEHICLE/ GENERAL INSURANCE)ALONG WITH SERVICE TAX ON THE PREMIUM. THE COMPANY COLLECTS THE PREMIUM FROM THE INSURED AND REMIT IT TO THE COMPANY'S BANK ACCOUNT AND THEN TRANSFER THE SAME TO INSURANCE COMPANY.
FURTHER HE IS NOT GIVING ANY RECEIPT/ACKNOWLEDGEMENT TO THE INSURED FOR COLLECTING THE AMOUNT. BUT THE INSURANCE COMPANY IS GIVEN THE SAME TO THE INSURED.
IN THIS REGARD MY QUERIES ARE
1) ON SUBMITTING FORM ST-3 (SERVICE TAX) WHETHER THE WHOLE AMOUNT RECEIVED FROM THE INSURED (PREMIUM + SERVICE TAX) SHOULD BE SHOWN IN THE FORM (SL. NO. B1.1 - PAGE PAYABLE SERVICE). OR ELSE HE NEED TO SHOW ONLY THE COMMISSION THAT IS RECEIVED BY THE COMPANY FROM THE INSURANCE COMPANY?
2) WHETHER HE NEEDS TO COLLECT/REMIT ANY SERVICE TAX FROM THE INSURED/INSURANCE COMPANY FOR THE ABOVE TRANSACTION?
3) IF YES UNDER WHAT BASIS?
THANKING YOU IN ADVANCE
MY FRIEND IS A DIRECTOR OF PRIVATE LTD COMPANY. ONE OF ITS BUSINESS IS TO COLLECT INSURANCE PREMIUM(VEHICLE/ GENERAL INSURANCE)ALONG WITH SERVICE TAX ON THE PREMIUM. THE COMPANY COLLECTS THE PREMIUM FROM THE INSURED AND REMIT IT TO THE COMPANY'S BANK ACCOUNT AND THEN TRANSFER THE SAME TO INSURANCE COMPANY.
FURTHER HE IS NOT GIVING ANY RECEIPT/ACKNOWLEDGEMENT TO THE INSURED FOR COLLECTING THE AMOUNT. BUT THE INSURANCE COMPANY IS GIVEN THE SAME TO THE INSURED.
IN THIS REGARD MY QUERIES ARE
1) ON SUBMITTING FORM ST-3 (SERVICE TAX) WHETHER THE WHOLE AMOUNT RECEIVED FROM THE INSURED (PREMIUM + SERVICE TAX) SHOULD BE SHOWN IN THE FORM (SL. NO. B1.1 - PAGE PAYABLE SERVICE). OR ELSE HE NEED TO SHOW ONLY THE COMMISSION THAT IS RECEIVED BY THE COMPANY FROM THE INSURANCE COMPANY?
2) WHETHER HE NEEDS TO COLLECT/REMIT ANY SERVICE TAX FROM THE INSURED/INSURANCE COMPANY FOR THE ABOVE TRANSACTION?
3) IF YES UNDER WHAT BASIS?
THANKING YOU IN ADVANCE
17 April 2015
1. In form ST-3 only the commission received by the company should be shown.
2. Service tax will be paid by insurance company under reverse charge for the above transaction.
2. Service tax will be paid by insurance company under reverse charge for the above transaction.
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17 April 2015
Thank you Seetharaman Sir,
Whether,
1) he needs to pay service tax on commission received from the insurance company.
2) he needs to issue any receipt/ acknowledgement to the insured for collecting the premium.
Thank you in advance
Whether,
1) he needs to pay service tax on commission received from the insurance company.
2) he needs to issue any receipt/ acknowledgement to the insured for collecting the premium.
Thank you in advance
17 April 2015
1) No, under reverse charge it will be paid by insurance company.
2) No, receipt is issued by insurance company.
2) No, receipt is issued by insurance company.
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17 April 2015
Thank You Seetharaman Sir,
Is it an abatement or exemption?
Please specify the notification no. along with serial no. in order to show the same in Form - ST 3 (Sl. No. A11.2 OR A12.2, Page Payable Service).
Thank Your
Is it an abatement or exemption?
Please specify the notification no. along with serial no. in order to show the same in Form - ST 3 (Sl. No. A11.2 OR A12.2, Page Payable Service).
Thank Your
17 April 2015
It is not an abatement or exemption. Since it is not a taxable service for the company don't show this service in ST-3.
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17 April 2015
Dear Sir/Madam,
Please explain the difference between Abatement and Exemption in relation to Service tax?
Whether a notification issued under the Finance Act 1994 shall act as notification for both abatement and exemption?
Thank you in advance
Please explain the difference between Abatement and Exemption in relation to Service tax?
Whether a notification issued under the Finance Act 1994 shall act as notification for both abatement and exemption?
Thank you in advance
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17 April 2015
Thank you Seetharaman Sir,
Whether he needs to file nil return in this case?
Thank you
Whether he needs to file nil return in this case?
Thank you
17 April 2015
If abatement is 60% only tax payable on 40% and for exemption no service tax payable.
Yes nil return has to be filed.
Yes nil return has to be filed.
17 April 2015
THANK YOU SEETHARAMAN
WHAT IS NOTIFICATION NO. THAT HAS TO BE MENTIONED IN THE ST-3 RETURN FOR THE ABOVE?
THANK YOU
WHAT IS NOTIFICATION NO. THAT HAS TO BE MENTIONED IN THE ST-3 RETURN FOR THE ABOVE?
THANK YOU
17 April 2015
NIL return can be filied by claiming exemption vide N/N-33/2012 dated 20-06-12 in the appropriate column and the taxable amount shall become zero.
17 April 2015
Thank You Seetharaman Sir,
Suppose if he receives commission amounting to Rs.15 lakhs (more than rs. 10 lakhs) what he needs to do?
Thank you in advance.
Suppose if he receives commission amounting to Rs.15 lakhs (more than rs. 10 lakhs) what he needs to do?
Thank you in advance.
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17 April 2015
Thank you Seetharaman Sir,
Suppose if he receives commission amounting to Rs.15 lakhs (more than rs. 10 lakhs (ssi exemption limit)) what he needs to do?
Thank you in advance
Suppose if he receives commission amounting to Rs.15 lakhs (more than rs. 10 lakhs (ssi exemption limit)) what he needs to do?
Thank you in advance
17 April 2015
I modify my reply don't opt for N/N 33/2012.
You have to fill the amount in (c) (iii) of ST-3. Amount received as pure agent.
(c)
Value on which service tax is exempt/ not payable
(i) Amount received against export of service^
(ii) Amount received (Paid#) towards exempted service (other than export of service, i.e. (i) above)
(iii) Amount received as/ (Paid to#) pure agent (Please see instruction).
You have to fill the amount in (c) (iii) of ST-3. Amount received as pure agent.
(c)
Value on which service tax is exempt/ not payable
(i) Amount received against export of service^
(ii) Amount received (Paid#) towards exempted service (other than export of service, i.e. (i) above)
(iii) Amount received as/ (Paid to#) pure agent (Please see instruction).
17 April 2015
Sir,
I can't able to under stand what you are trying to say in the above reply. Please give detailed reply in this regard.
Thanking you in advance
I can't able to under stand what you are trying to say in the above reply. Please give detailed reply in this regard.
Thanking you in advance
17 April 2015
You should not choose any exemption or abatement option in the form.
Choose to fill in the following part of form ST-3.
F. Value of taxable service, service tax payable and gross amount charged:
you have to choose c (iii). and fill the detail.
Choose to fill in the following part of form ST-3.
F. Value of taxable service, service tax payable and gross amount charged:
you have to choose c (iii). and fill the detail.
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