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Insurance agent services

raman kejriwal (st xaviers college) (64 Points)

11 September 2015

insurance agent services are chargeable under reverse charge but agents are employees of the company. so why it is not exempted

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4 Replies

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 11 September 2015

I will have to applaud you for such a different angle of thinking, quite frankly i am stunned by your question, so hope someone clarifies your doubt.

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Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 11 September 2015

Dear Raman, Insurance Agents, as the name suggests, are the agents of the insurance companies and they are never EMPLOYEE of the company. Agents don't get salary from the company but they receive commission based on their performances. So, their service is taxable under reverse charge and the company is liable to pay service tax thereon.