Life insurance commission agency service
This query is : Resolved
28 November 2012
Hi All,
My query is
1. "Can an individual life insurance agent avail exemption from service tax on his commission income upto Rs. 10 lakh?"
2. "If service tax has been deducted from his commission can he claim refund of the same from the department?"
Thanking you in advance.
My query is
1. "Can an individual life insurance agent avail exemption from service tax on his commission income upto Rs. 10 lakh?"
2. "If service tax has been deducted from his commission can he claim refund of the same from the department?"
Thanking you in advance.
28 November 2012
In respect of services rendered by an insurance agent, service tax is payable by the insurance company. The agent is NOT liable to pay service tax.
Message likes :
1 times
28 November 2012
That is true but his commission gets reduced by the amount of service tax. Can't he avail the exemption upto the first Rs. 10 lakh of his commission income?
28 November 2012
You mean to say that the insurance company is recovering the service tax amount from the agent?
The reduction must be of TDS.
The reduction must be of TDS.
28 November 2012
Yes the company is deducting service tax as well as tds from commission.
28 November 2012
Insurance Services are under reverse charge mechanism.
It is to be noted that no basic exemption limit is allowed under services following under reverse charge mechanism.
Besides it is service receivers duty to pay service tax upto 100% under insurance services.
Hence 1. Your agent cannot avail basic exemption limit
2. You cannot claim refund
It is to be noted that no basic exemption limit is allowed under services following under reverse charge mechanism.
Besides it is service receivers duty to pay service tax upto 100% under insurance services.
Hence 1. Your agent cannot avail basic exemption limit
2. You cannot claim refund
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
