IRDA to charge service tax to players

India Infoline News Service | Mumbai |

The regulator is required to collect service tax from its insurance companies, brokers and agents

The Insurance and Regulatory Development Authority (IRDA) will charge service tax from insurance companies, brokers and agents on providing services such registration and renewal.

The regulator is required to collect service tax from its insurance companies, brokers and agents, said an IRDA notification.

Service receivers are required to add service tax component, as applicable, to the fee while making remittances to the authority from January 1, it added.

However, no details have been provided on the rate of service tax applicable to individual categories.

At present, the rate of Service Tax is 12% and cess 3%. Life insurance policyholders pay service tax at the rate of 3% for the first year premium. For subsequent years it is 1.5%.
 

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