Finance
& Accounts Department – Central Office, ‘Yogakshema’, Jeevan Bima Marg,
P.B.No.19953, Mumbai
CO/F&A/Service
tax/102 11.12.2013
Circular
No.EDA/ZDB/965
TO
ALL THE OFFICES OF THE CORPORATION
RE: Service tax in respect of Modified
Jeevan Aarogya plan.
Under Modified Jeevan Aarogya plan, following
points in respect of service tax may be noted:
- The
service tax shall be payable by the policyholder on the premium including
extra premium, if any, as per the prevailing service tax rates. The
prevailing service tax rate for the F.Y. 2013-14 applicable to Modified
Jeevan Aarogya plan is 12.36% (including Education Cess @2% and Higher
Secondary Education Cess @1%).
- Service
tax and the rate of service tax is applicable as per the amendments in
Service tax laws from time to time.
- Service
tax @12.36% shall also be collected on the cooling off charges recovered,
if any.
- Service
tax collected on premium @12.36% shall be refunded to the policyholder on
cancellation during the cooling off period.
- The
above service tax provisions are applicable to the whole of
Yours faithfully,
Executive Director (F&A)
000000000000000000000000000000000000000000000000000000000000000000000000000
Finance
& Accounts Department – Central Office, ‘Yogakshema’, Jeevan Bima Marg,
P.B.No.19953, Mumbai
CO/F&A/Service
tax/102 20.12.2013
Circular
No.EDA/ZDB/966
TO
ALL THE OFFICES OF THE CORPORATION
RE: Service tax rates
for the F.Y. 2013-2014
As per Rule 6(7A) of Service tax Rules, the
Insurer has the option to pay service tax on life insurance business on the
following basis w.e.f 1.4.2012 which is also applicable for the F.Y. 2013-2014:
(i) @12.36% on the
gross premium charges from a policyholder reduced by the amount for investment
or savings on behalf of the policyholder, if such amount is intimated to the
policyholder at the time of providing service
(ii) @12.36% on the
premium where the entire premium paid by the policyholder is only towards risk
cover in life insurance
(iii) 3.09% of the
premium charged from the policyholder in the first year and 1.545% of the
premium charged from the policyholder in the subsequent year (for all the
remaining policies which are not covered under (i) and (ii) mentioned above)
Kindly note that the above mentioned service tax rates
includes Education Cess and Higher Secondary Education Cess (HSEC)
Type of plans for
Service tax rates:
1.ULIP plans and ULIP
type plans
For all the ULIP plans, service tax
(including Education cess and HSEC) shall be charged @12.36% on the charges.
For Non Linked plans (which are ULIP type) service tax (including education
cess and HSEC) shall be charged @ 12.36% on the charges.
2.Terms Plans and Health Plans
For Term Assurance plans and Health plans
where the entire premium is towards rsik premium, service tax (including
Education cess and HSEC)shall be charged @12.36% on the premium (i.e. first
year premium, renewal premium and single premium)
3.Other Plans
For Conventional plans, Endowment plans,
Annuity and Pension plans service tax (including Education Cess and HSEC) shall
be charged @3.09% on new business premium (i.e. first year and single) and
1.545% on the renewal premium.
Kindly note the below mentioned points:
- Service
tax shall be payable by the policyholder on the additional /top up/extra
premium as per the rates defined for type of plans mentioned above.
- Service
tax collected on premium shall be refunded to the policyholder on
cancellation during the cooling off period.
- Service
tax calculated @12.36% on mortality charges, proportionate risk premium,
accident disability rider, cooling off charges, if any shall be recovered
from the policyholder on cancellation of the policy during the cooling off
period.
- Service
tax and the rate of service tax is applicable as per the amendments in
Service tax laws from time to time.
The above mentioned service tax provisions
are applicable whole of India
except Jammu and Kashmir
Yours faithfully,
Executive Director (F&A)
Finance
& Accounts Department – Central Office, ‘Yogakshema’, Jeevan Bima Marg,
P.B.No.19953, Mumbai
CO/F&A/Service
tax/102 20.12.2013
Circular
No.EDA/ZDB/967
TO
ALL THE OFFICES OF THE CORPORATION
RE: Service tax rates
for New Plans
We herewith state below the service tax rates
for the below mentioned plans.
LIC’s Money Back Plan -20 years, LIC’s Money
Back Plan -25 years, LIC’s New Endowment Plan, LIC’s New Jeevan Anand Plan:
Since these are Endowment plans, the service
tax (including Education cess and HSEC) shall be charged @3.09% on the first
premium and other first year premium and 1.545% on the renewal premium
LIC’s New Bima Bachat Plan, LIC’s Single
Premium Endowment plan:
Since these are Endowment plans, the service
tax (including Education cess and HSEC) shall be charged @3.09% on single
premium.
LIC’s New Jeevan Nidhi Plan
Since this is a Pension plan, service tax
shall be charged @3.09% on the first premium, other first year premium and
single premium and 1.545% on the renewal premium.
Kindly note that the provision of Service tax
mentioned in our circular ref: ZDB/EDA/966 dated 20.12.2013 shall continue to
apply.
Executive Director(F&A)
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