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Insurance auxiliary services concerning life insurance business - Taxable Services - As appliable on or before 30-6-2012

 
Chapter No. 045
Insurance auxiliary services concerning life insurance business
 

Life Insurance Auxiliary Service

(w.e.f. 16.8.2002)

What is taxable - 65(105)(zy)

Any service provided or to be provided  to a policy holder or any other person or insurer, including re-insurer by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning life insurance business;

Who is the receiver of service

Policy holder or insurer or re-insurer or any other person

Who is the provider of service

An actuary or intermediary or insurance intermediary or insurance agent

Who is liable to pay service tax

Insurer (Service Receiver) or re-insurer

Meaning of Actuary - 65(1)

 "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938;

As per clause (1) of section 2 of the Insurance Act, 1938

"An actuary means an actuary possessing such qualification, as may be prescribed".

Meaning of Insurance Agent - 65(54)

"Insurance Agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938;

As per clause (10) of section 2 of the Insurance Act, 1938;

"Insurance Agent means an insurance agent licensed under section 42, who receives or agrees to receive payment by way of commission of other remuneration in consideration of his soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance."

Meaning of Insurance Auxiliary Service - 65(55)

"insurance auxiliary service" means any service provided by an actuary, an intermediary or insurance intermediary or an insurance agent in relation to general insurance business or life insurance business and includes risk assessment, claim settlement, survey and loss assessment;

Meaning of Intermediary or Insurance Intermediary - 65(56)

 "intermediary or insurance intermediary" has the meaning assigned to it in sub-clause (f) of sub-section (1) of section 2 of the Insurance Regulatory and development Authority Act, 1999;

As per clause (f) of sub-section (1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999;

"Intermediary or insurance intermediary is defined inclusively and it includes insurance brokers, reinsurance brokers, insurance consultants, surveyors and loss assessors."

Meaning of Insurer - 65(58)

"insurer" means any person carrying on the general insurance business or life insurance business and includes a re-insurer;

Meaning of Life Insurance Business - 65(61)

 "life insurance business" has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938;

As per clause (11) of section 2 of the Insurance Act, 1938;

"'life insurance business' means the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, and any contract which is subject to payment of premiums for a term dependent on human life and shall be deemed to include-

(a)    the granting of disability and double or triple indemnity accident benefits, if so provided in the contract of insurance;

(b)   the granting of annuities upon human life; and

(c)    the granting of superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment or of the dependents of such persons";

Comments:

A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :-

"6. This circular supersedes all circulars, clarifications and communications, other than Orders issued under section 37B of the Central Excise Act, 1944 (as made applicable to service tax by section 83 of the Finance Act, 1994), issued from time to time by the CBEC, DG (Service Tax) and various field formations on all technical issues including the scope and classification of taxable services, valuation of taxable services, export of services, services received from outside India, scope of exemptions and all other matters on levy of service tax.  With the issue of this circular, all earlier clarifications issued on technical issues relating to service tax stand withdrawn."

 
 
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