Service tax on commission received from general insurance co

CA Dauzi Pathan Imran Khan (Chartered Accountant in Practise)   (1678 Points)

25 November 2013  

Dear all,


The Problem is, an automobile dealer entered into agreement with General Insurance Company for providing agency service to General insurance company. As per the finance act 1994, insurance company (service receiver) is liable to pay service tax under reverse charge mechanism. But as per terms of agreement, the liability of service tax should be borne by Dealer i.e., service provider. My question is, can that terms of agreement override the provision of Act? (i.e., service tax payable by service receiver). If not, please specify any decided cases or other base?


And if dealer (serice provider) pays the service tax on commission agency services, can he avail CENVAT on the same?