S.t. on excess receipt of insurance premium

This query is : Open

chirag shah (Querist)
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17 July 2012 we have agencies of various insurance companies.

we received insurance premium from our sub agents on behalf of insurance company and issued policy.

on receipt of those premium amounts we pay 70% premium to the insurance company. out of remaining 30% -
1) 15% give to sub agents as commission
2) 15% gain

i want to know----
whether we have any service tax liability because we providing service to the sub agents.......??????

Suresh Mittal

Suresh Mittal (Expert)
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17 July 2012 First of all, in my opinion, you are providing service to Insurance company and not to sub-agents. I assume that the receipts issued by insurance company is of 100% amount and not of 70%. If it is so, then you are being paid by insurance company and not by any one else.
If above facts are correct, then your service is subject to revese charge, so you are not liable to pay Service Tax. In this case service tax is to be paid by insurance companies.

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chirag shah

chirag shah (Querist)
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18 July 2012 Thank you very miuch sir...

But the receipts issued by insurance company is of 70% only...

i think as per insurance auxillary service, we charging extra 30% amount and liable to service tax...is this true...???

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