SERVICE TAX ON KEYMAN INSURANCE POLICY

[SUMEDH AYARE]

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.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified? If not please inform.

AI Summary

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.