Service tax on Premium Allocation Charges

[Amit Kumar Aggarwal]

Dear Sir,

May you explain me the Sec 60 ( 105) (zx ) and 60 (105) (ZZZF) with an example of service tax. Is service tax applicable on allocation charges before 17/2/2010.

AI Summary

Service Tax Applies to Premium Allocation Charges under ULIP as per Section 65(105)(zzzzf) and Section 67 Rules. A participant inquired about the applicability of service tax on premium allocation charges, specifically referencing Sections 60(105)(zx) and 60(105)(ZZZF). A respondent clarified that the correct reference is Section 65(105)(zzzzf), which relates to 'Investment Management Services provided under ULIP.' The gross amount charged for these services is subject to service tax, regardless of the terminology used, such as allocation charges. This is governed by Section 67 of the Service Tax (Determination of Value) Rules, 2006.