Ans. Taxable service under insurance sector is the service provided to a policy holder, by
an insurer carrying on general insurance business, i.e. fire, marine and miscellaneous
insurance business.
Q.2 What is the value of taxable service in case of Insurance Services?
Ans. In the case of Insurance services, the value of taxable service is the total amount of
premium received by the insurer from policyholder.
Q.3 Are any of the Insurance activities exempted from the levy of Service Tax? If so, what are they?
Ans. Following activities under insurance sector are exempt from the levy of Service Tax.
* Life Insurance
* General insurance services provided to U.N or International organisations.
* Services provided to policy holder of Jan Arogya Bima policy in relation to General
Insurance business.
* General insurance business for non life insurance premium to specified Diplomatic
mission.
* Personal Accident, social security and Hut Insurance Scheme.
* Comprehensive crop Insurance Scheme.
* Cattle Insurance under Integrated Rural Development Programme. -
* Janata Personal Accident Policy and Gramin Accident Policy. -
* Group Personal Accident Policy for self-employed women. -
* Agricultural Pumpset and failed well Insurance.
* Premia collected on insurance of Export of goods from India and Export Credit
Insurance.
* Premium received from Re-insurance both domestic and overseas. -
* All business for which premium is booked outside India.
* Small transactions involving premium of less than rupees fifty except Motor
insurance.
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