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Service Tax on Insurance Agents

Bharath Jain (Article Assistant Student) (58 Points)

28 May 2008

Hi,

Can you please let me know wheather Service Tax is to be Charged on Services provided by a Insurance Agent who is carrying the same as his Business and has his commission more than 8 lacs from the same......please reply back...

thank you

Bharath Jain

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8 Replies

Dilip Darji (392 Points)
Replied 28 May 2008

Such service provided by Insurance Agent is liable to Tax under Section 65 (105)(zl) under the Catagory of "Insurance Auxiiliary Services".

OFFICESELVA (Service) (515 Points)
Replied 28 May 2008

The liability is on insurance company and service tax should be paid by the company not the agent.

Bharath Jain (Article Assistant Student) (58 Points)
Replied 28 May 2008

Then whats the procedure to file the half yearly returns.......

M.Sriram Shenoy (CA Final) (814 Points)
Replied 29 May 2008

The service tax liability of any insurance agent will be vested with the insurance company and not the insurance agent.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 29 May 2008

The procedure to file half yearly returns is to furnish info. in Form ST-3 with the details available with you in GAR/TR-6 challan(s). The return must be filed with 25 days from the end of 6 months. There is no need to maintain separate books for service tax details. The format or type that you have maintained for your accounts is sufficient.

OFFICESELVA (Service) (515 Points)
Replied 30 May 2008

"Then whats the procedure to file the half yearly returns......."

If it pertains the same insurance agent, there is no need to file the return.

Pradeep Kumar N (ArticleShip) (28 Points)
Replied 14 June 2010

Can you please let me know, how do you account this service tax in the books of the insurance agent. Also can you let me know how you would raise an invoice for the commission, because if service tax component is showed in the invoice then the same has to be discharged.

Please clarify, or if any other method can be followed.