service tax on SBI LIFE INSURANCE BROKERS

[satbir singhwahi]

ACTING AS BROKERS FOR SBI LIFE INSURANCE BUSINESS, WHETHER LIABLE TO SERVICE TAX ON COMMISSION EARNED .

AI Summary

Service Tax Liability on Broker Commissions: Insurer Responsible, Not Agent, Per Rule 2(1)(d)(i)(A) of 1994 Rules. A query was raised regarding the liability of service tax on commissions earned by brokers acting for SBI Life Insurance. The response clarified that, according to Rule 2(1)(d)(i)(A) of the Service Tax Rules, 1994, the responsibility to pay service tax falls on the insurer, not the commission agent.