Liability of service tax on brokerage

[V Sithapathy Sithapathy]

We are life insurance brokers. We receive brokerage from life insurance companies and bill the service tax over and above the brokerage. What is the law. Who should pay the service tax.

AI Summary

Insurance company liability for service tax on brokerage: insurers, not agents, bear the tax obligation.
Liability for service tax on life insurance brokerage is placed on the insurance company receiving the service; bona fide insurance agents are not liable to pay service tax, though persons who do not qualify as insurance agents fall outside this exclusion and may have different obligations.