Service tax on re-insurance commission - regarding

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....ed the 16th April, 2010.   To             Director General of Service Tax, Mumbai             Director General of Central Excise Intelligence, Delhi             Chief Commissioner of Central Excise (All)  &n....

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....xpenses for running the insurance/reinsurance business. This shared expense is commonly known as 'commission' though strictly it is not in the nature of a commission. It may be pertinent to mention that the customer/beneficiary deals only with the insurance company and may not even be aware of the role of re-insurer and the backroom operations between the insurance company and the reinsurer. 3.....

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....consideration. Since the policy holder may not even be aware of the operations of the re-insurer, it cannot be said that the payment made by the re-insurer to the insurance company is for its business promotion or a service on behalf of the re-insuring company (i.e. Business Auxiliary Service). In fact, it is the reinsurer which provides insurance service to the insurance company. As both the insu....