Tax option for life insurers allows payment on disclosed investment-adjusted premium or a fixed percentage when not disclosed. Insurers carrying on life insurance business may elect an option to pay tax either on gross premium reduced by amounts allocated for investment or savings when such allocations are disclosed to the policy holder at the time of service, or otherwise by paying a prescribed fixed percentage of the gross premium; this option replaces charging service tax at the general rate and is not available where the entire premium is only towards risk cover in life insurance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax option for life insurers allows payment on disclosed investment-adjusted premium or a fixed percentage when not disclosed.
Insurers carrying on life insurance business may elect an option to pay tax either on gross premium reduced by amounts allocated for investment or savings when such allocations are disclosed to the policy holder at the time of service, or otherwise by paying a prescribed fixed percentage of the gross premium; this option replaces charging service tax at the general rate and is not available where the entire premium is only towards risk cover in life insurance.
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