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Issue ID: 108555
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commission received from oriental insurance co ltd

Date 07 May 2015
Replies 1 Reply
Views 2748 Views
Service tax liability falls on insurer, not agent, for commissions on general insurance business under applicable law.
Service tax on commissions for general insurance is chargeable on the insurance company, not the agent; the insurer bears responsibility to pay the tax on commissions received in relation to general insurance business. (AI Summary)

Commission is received from Oriental Insurance co ltd for General Insurance business. Whether service tax liability is on oriental Insurance co Ltd or the person receiving commission.

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Replied on Nov 19, 2015
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Service tax is liable to be paid by the insurance company as per Notification no. 30/2012 and not the insurance agent.

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