Service tax on health insurance

Service Tax on health insurance's premium is chargable @ 14.50 % (current rate of Service Tax) of gross premium amount. There is no abatement for it.

Agreed! its 14% Service Tax and 0.5% education cess. Also, certain insurance policies are exempted under clause 26 and 26A of notification no.25/2012 as amended from time to time.

Sorry its 0.5% Swachh Bharat Cess, mis-typed as Education cess.

As far as health insurance is concerned, if the taxable service provider or manufacturer is paying for a group policy the full credit can be availed by the company