Service tax is applicable on l.i.c agent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 SERVICE TAX IS APPLICABLE ON L.I.C AGENT IF TURNOVER INCOME 32 LAC IN THE F.Y 2011-12.AND
SEC 44AD WILL BE APPLICABLE ON THIS INCOME.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

23 June 2012 1. A LIC agent provides service to LIC. LIC is the service recipient and not the customer of the agent.

2. In case of such service, the service recipient is liable to pay service tax and NOT the LIC agent.

3. Section 44AD has been retrospectively amended to provide that the benefit of Section 44AD is NOT available to agency or commission income.

Accordinngly, LIC agent CANNOT avail benefit of Section 44AD.

He will have to compute his income as per the normal provisions and file ITR 4.