Servicetax
awadhesh khadiwala
(Querist) 23 August 2011
This query is : Resolved
sir,
i have purchased 2 life insurance policy one from lic in1987 it,s preimum isRs 1383 in my name and other in my son,s name in 2005 it,s preium wasRs7421 from bajaj allianz now bajaj allianz is collecting service tax edu.cess and inhanced preium to Rs 7535 I lodge acomplain with insurer to not collect taxes from policy holder but bajaj is not agree.NOW MY QUITION IS WHEATHER bajaj allianz is right if not what remady avilabel to policy holder. awadhesh kumar gupta.
ajay sethi
(Expert) 23 August 2011
yes bajaj allianz is right The coverage provided by a life insurer to a policyholder in relation to risk cover is considered as a taxable service. Service tax is an indirect tax, and hence is passed on to the ultimate consumers. As mentioned above the Act makes it obligatory for a person providing services to levy and collect service tax.
R.Ramachandran
(Expert) 24 August 2011
Very well advised by Mr. Sethi.
A. A. JOSE
(Expert) 24 August 2011
Yes, being a taxable service, the action of Bajaj allianz is right.
