Insurance Survey Service

[CA AJAY KUMAR AGRAWAL]

Insurance Co. has appointed XYZ (P) Ltd. as insurance surveyor & loss assessor. XYZ (P) Ltd has further subcontracted the said work to Mr A who does the survey work / loss assessing for which he is paid by XYZ (P) Ltd. Mr A presently has no set up of business & does the work in Individual capacity. He wants to get Service Tax Registration. Kindly share your valuable views on this aspect, with Service Code, Exemptions etc, as applicable.

[MUKUND THAKKAR]

Your income cross ₹ 10 lakhs in such activity than after rethinking about service tax,,

[KASTURI SETHI]

I agree with the views of Sh.Mukund Thakkar, Sir. Sub-contractor called A has to obtain Service Tax Registration Certificate after crossing the turnover of ₹ 9 lakhs but ST is to be paid after crossing turnover of ₹ 10 lakhs in terms of Notification No.27/05-ST dated 7.6.2005 as amended vide Notification No.10/08-ST dated 1.3.2008.

[Ganeshan Kalyani]

Sir, there is no exemption. The service is taxable. Thanks.

AI Summary

Service tax registration required for subcontracted insurance surveyors once turnover threshold is exceeded; tax payable upon statutory chargeability threshold. Subcontracted insurance survey and loss assessment services provided by an individual are taxable; the individual subcontractor must obtain a service tax registration certificate once his turnover crosses the statutory registration threshold, while actual service tax liability arises at the statutory chargeability threshold. There is no exemption for such services and compliance with the relevant service tax notifications is required.