TaxTMI 
TaxTMI 
WHETHER SERVICE TAX ATTRACTS ON KEYMAN INSURANCE POLICY TAKEN BY COMPANY IN FAVOUR OF DIRECTOR. PREMIUM PAID BY COMPANY. WHAT WILL BE THE CONSEQUENCIES IN CASE OF DEATH OR MATURITY.
SERVICE TAX ON KEYMAN INSURANCE POLICY
SUMEDH AYARE
Service tax on keyman insurance policies may apply when a company pays premiums for a director's benefit. Whether service tax is chargeable on premiums paid by a company for a keyman insurance policy taken in favour of a director, and the tax consequences on insurer payments on death or on policy maturity; the document records a query and a non substantive follow-up asking if clarification was obtained. (AI Summary)
