08 December 2014
The Income-Tax Department has slapped notices on general insurance companies asking them to pay tax on premiums paid to reinsurers overseas. According to the tax authorities, the premium paid to overseas companies is taxable and should be deducted at source. Their contention is that as Indian insurance companies are collecting premium from the insured in India and the same risk is reinsured with overseas companies, Indian companies are acting as agents for the foreign reinsurers.
08 December 2014
Sir we are insurance brokers who collects insurance premium from indian insurance companies and remit the same to foreign companies . Still TDS would be applicable?
CAclubindia
