Service tax on insurance - issues raised by united insurance co. Reg.

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....provisions relating to refund claims and to allow them to adjust the refund in the future payments of the tax. They have further requested for permission to adjust the tax whenever premium adjustment as allowed on account of the refund to their regular clients. They have brought to notice the following situations relating to refunds (i) Pro-rata refund - In this category, the insurance company ma....

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....d has to debit the account later when it is learnt that the cheque has been dishonored. They calculate the Service Tax on such premium and pay the same to the Department under Section 68 of the Act. Refund may arise in such cases also. The estimate approximately 1,25,000 applications for refund on a year. It will be difficult for them to file refund claims each and every time under Section 11-B o....