SERVICE TAX WILL NOT BE LEVY ON REMINDER FOR INSURANCE POLICIES AS THESE ARE NOT BEING
INVOICES
Circular No.166/1/2013 –ST,
Date: 1stJanuary, 2013
No service tax will be charged in respect of notices
/reminder letters issued for Life Insurance Policies.
A
clarification has been required by Life Insurance Sector, whether the notices
or reminder letters issued by them to policy holders to pay renewal premium
shall be liable to service tax.
It is clarified that reminder
letters/notices for insurance policies not
being invoices would not invite levy
of service tax. In case of
issuance of any invoice, point of taxation shall be determined according to Point Of Taxation
Rule 2011 and Service Tax Rules 1994 (Rule 4A)
The above clarification is
issued only for life
insurance sector.
Regads
CA Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road
Connaught Place, Delhi-110001
Mobile : +91-9873082769
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