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<h1>Life Insurers Have Three Options for Service Tax Payment Under Section 66B and Rule 6(7A) of 1994 Rules.</h1> An insurer conducting life insurance business has three options for paying service tax under section 66B and rule 6(7A) of the Service Tax Rules, 1994. Option A involves a 14% tax on the gross premium minus investment or savings. Option B offers a composite rate: 1.4% on single premium annuity policies, 3.5% on the first-year premium, and 1.75% on subsequent years, excluding policies solely for risk cover. Option C applies a 14% tax on the actual value of taxable services.