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Charging of S.Tax on earning through LIC, Service Tax |
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Charging of S.Tax on earning through LIC |
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Sir, I have a policy of 25 Lac for maintenance of my factory assets(machinery) and also paying premium.Before the policy expired I incurred loss to assets and received compensation as per insurance terms from insurer to the tune of 8 lacs. The service tax deptt. is claiming service tax on this income as business income. Please guide.Regards,Pradip. Posts / Replies Showing Replies 1 to 5 of 5 Records Page: 1
Mr.Pradip In my opinion,Service tax is not applicable on this income because you are not providing any service SHIVKUMAR SHARMA
Dear Sir, As per my view, service tax would not be leviable on such compensatory claim received as this is not a case of providing the service.
Department contention appears to be right as compensation in form of insurance is received due to loss made on the assets. Making any gain/profit on any activity (other than manufacturing activity) and relating to business is nothing but business income.
Dear All, This is an interesting issue. In addition to above replies, please also check the Negative list, Mega exemption notification and relevant judgments in this regard to dig out the appropriate answer. Regards, Team YAGAY & SUN (Indirect Tax Consultants)
Even if they want charge st u can opt as ssi
Page: 1 Old Query - New Comments are closed. |
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