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Service tax applicability

13 January 2021

Is service tax applicable on services provided by insurance agent and he received commission income from lic housing india. so whether service tax applicable or not if applicable please refer case laws also.

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3 Replies

sabyasachi mukherjee (27574 Points)
Replied 14 January 2021

Generally yes,
With the introduction of GST , there was certain loopholes under service tax act.
Sales of Goods Act is a seoerate Act and Goods and Service Tax Act is different.
Those were two seperate legislations .
As a result of the fact, Goods and Service Tax Act was introduced.
There sre several other enactments.

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Kapadia Pravin (17259 Points)
Replied 14 January 2021

GST at 18% is applicable to all taxable value of supply provided by an agent, including the sale/purchase of advertising space/time. Following are some of the services provided for a fee/commission or on a contract:

Sale of land/building.

Any retail/wholesale trade service.

Property management service.

Real estate appraisal service.

Commission agent services to negotiate wholesale commercial transactions.

Usually, a supplier of goods/services is required to pay GST. But, in some cases, a recipient of goods/services is required to pay GST called a reverse charge mechanism RCM