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Service tax-on receipt of insurance claim

CA. Jiya (Sr. Executive) (64 Points)

12 July 2012

Hello friends...

Pls answer the Following...

Is service Tax Applicable on....

1) Receipt Of Incurance claim by entity.

2) Recovery of Loss of Goods In Transit from Transporters.

3) Recovery of Loss of Goods In Transit from Insurance Company.

4) Recovery of Electricity Expenses from Employees.

5) Incentive/Commission Paid to AOPs.

6) Recovery for damage to Can

7) Interest Income from Nationalised Bank / Co. Operative Bank/ Others/ MGVCL /WBEDCL

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4 Replies

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

1) Not applicable 2) No. Per se such amounts are not consideration unless it represents a portion of the consideration for an activity that has been carried out. 3) No 4) No 5) No, provided employer and employee relationship exists. 6) No. Per se such amounts are not consideration unless it represents a portion of the consideration for an activity that has been carried out. 7) No. 7)

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CA. Jiya (Sr. Executive) (64 Points)
Replied 12 July 2012

Sir... Thank you for Answering....

Can you pls Elobrate little.. Point no 6 i.e.we are in Dairy Industry. We do recovery for damages to the milk can..

so... I NOT ABLE TO UNDERSTAND....

Pls Pls Suggest...

CA. Jiya (Sr. Executive) (64 Points)
Replied 12 July 2012

in the same way we recover charges for damage to Property and damage to crates.....

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

If your main service is taxable then in relation to the main service if any amount is realized as demurrage or by any other name whatever called, for the provision of service beyond the period originally contracted or in any other manner relatable to the provision of the main service is chargeable to service tax. Again, accidental damages due to unforeseen action not relatable to the provision of service is excluded from the value of service. Reference can be has with Rule 6 of the Service tax Determination of Value Rule, 2006. Hope now it is clear to you.