| Q.1 |
What is the taxable
service under insurance sector? |
| Ans. |
Taxable service under
insurance sector is the service provided to a policy holder,
by an insurer carrying on general insurance business, i.e. fire,
marine and miscellaneous insurance business. |
| Q.2 |
What is the value
of taxable service in case of Insurance Services? |
| Ans. |
In the case of Insurance
services, the value of taxable service is the total amount of
premium received by the insurer from policyholder. |
| Q.3 |
Are any of the Insurance
activities exempted from the levy of Service Tax? If so, what
are they? |
| Ans. |
Following activities
under insurance sector are exempt from the levy of Service Tax.
- Life Insurance
- General insurance services provided to U.N or International
organisations.
- Services provided to policy holder of Jan Arogya Bima
policy in relation to General Insurance business.
- General insurance business for non life insurance premium
to specified Diplomatic mission.
- Personal Accident, social security and Hut Insurance
Scheme.
- Comprehensive crop Insurance Scheme.
- Cattle Insurance under Integrated Rural Development Programme.
-
- Janata Personal Accident Policy and Gramin Accident Policy.
-
- Group Personal Accident Policy for self-employed women.
-
- Agricultural Pumpset and failed well Insurance.
- Premia collected on insurance of Export of goods from
India and Export Credit Insurance.
- Premium received from Re-insurance both domestic and
overseas. -
- All business for which premium is booked outside India.
- Small transactions involving premium of less than rupees
fifty except Motor insurance.
{Authority :- Notfn.3/94-ST dt. 30.6.96, No. 10/97-ST dated
26.11.96 and 12/97-ST dated 14/2/97}. |
