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: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: due date for vat payment :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: empanelment :: VAT Audit :: TDS :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Budget Reactions: Higher service tax to make insurance premium costlier
March, 17th 2012

With increase in the service tax to 12%, insurance premia are likely to become costlier for life insurance products. "With the increase in service tax to 12% from 10%, the policyholders will have to pay higher insurance premiums for general and traditional life insurance products.

The increase in tax on various charges in the unit-linked products, premium allocation to policyholder fund will reduce," global consultancy firm KPMG partner Shashwat Sharma said. Within the existing limit for deduction (Rs 15,000 for individuals and Rs 20,000 for senior citizens), a deduction of up to Rs 5,000 is being allowed for preventive health check-up that will provide a fillip to preventive healthcare sector, he said.

It may also result in product innovation in health insurance industry like inclusion of payment for preventive health check-ups in health insurance premium, reduction in insurance premium for individuals who go for regular preventive health checkups amongst others, he added. Private insurer Bharti Axa Life Insurance felt increasing the sum assured to premium ratio to 10 times will promote long term contracts.

"It will also encourage customers to go in for higher protection. On the flip side, this will make life insurance costly for older age bands if they procure a product after age 45 since mortality rates go up," Bharti chief financial officer V Srinivasan said. Meanwhile, lifting the 20% restriction in Centvant credit and allowing 100% credit is a very welcome move as it will enable insurance companies to recover the entire input service tax from the output service tax liability, he said.

"Another point to note is the bringing of insurance companies within the ambit of the minimum alternate tax (MAT). This would result in insurance companies paying tax, the moment they start showing book profits," he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Wholesale Silver Jewelry

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