Tax deducted at source
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 November 2013
hi..I would like to know the tds rate on commission paid by re-insurance company to insurance company for fy 2012-13.And also is re-insurance business is covered under the definition of insurance business for income tax purpose. kindly advise.
19 November 2013
At many places we read as insurance includes "reinsurance"
.
On plain reading of Section 194D, it seems that re-insurance commission has not been covered but in the context of your above query, I am of the view that the Re-insurance Company is paying commission to the Insurance company for procuring insurance business for itself.
.
So, it should deduct TDS while paying/ crediting commission to the insurance company.
.
In other words, re-insurance is re-insurance for the Insurance Company. It is primarily an insurance business for the other one.
.
On plain reading of Section 194D, it seems that re-insurance commission has not been covered but in the context of your above query, I am of the view that the Re-insurance Company is paying commission to the Insurance company for procuring insurance business for itself.
.
So, it should deduct TDS while paying/ crediting commission to the insurance company.
.
In other words, re-insurance is re-insurance for the Insurance Company. It is primarily an insurance business for the other one.
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