Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT Audit :: empanelment :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4%
 
 
« Service Tax »
 All GST council decisions taken by consensus and will be passed in states as well
 It would be wiser to put off implementation of GST till September
 Revised GST legislation may pinch working capital of industries
 GST to result in price reduction for consumers: Hasmukh Adhia
 Bill gives free hand to CAG to audit GST operation
 Lok Sabha to discuss GST bills on Wednesday
 GST to strengthen organised logistics companies
 No need for Parliament nod to waive property tax in Delhi
 CBEC to be renamed, reorganised for GST regime
  GST debate now continues on categorisation of products
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks

Life Insurance Council bats for reduction in service tax
December, 12th 2014

Life insurers have asked for parity with other financial products such as mutual funds and fixed deposits, which do not attract service tax on maturity.

Calling for an end to the step-motherly treatment to life insurance policies industry body Life Insurance Council has suggested to the Finance Ministry that life insurance products, which presently attract a service tax of 2 per cent on maturity proceeds for policyholders holding PAN cards and 20 per cent those without PAN cards, should be removed. These recommendations were made by the Council as a part of the pre-budget recommendations to the Government for the life insurance industry.

“Life insurance products are given a step-motherly treatment in taxation. The service tax provision on maturity proceeds is only applicable to life insurance policies that are long-term products and not levied on short-term financial products like mutual funds and bank fixed deposits,” said V Manickam, Secretary General of the Life Insurance Council.

He said life insurers are mandatorily required to invest 50 per cent of their overall investments in Central and State Government securities, which stand at around ?10 lakh crore. Life insurers have also invested ?3 lakh crore in infrastructure investments, he added.

The Council has also asked to carve out a separate tax exemption limit for life insurance premiums of ?1.5 lakh in Budget 2015-16, to help attract more flows into life insurance policies. The Council also sought a reduction in service tax for annuities and regular premium traditional policies to 1.5 per cent from the current 3 per cent to make life insurance products more attractive. A senior official from the insurance regulator said that they have written to the Finance Ministry to make insurance more tax-payer friendly.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions