1. Clarification in respect of notices/ reminder letters issued for life insurance policies
Issue:
Whether service tax liability arises when life insurance companies issues reminder notices/letters are being issued to the policy holders to pay renewal premiums.
Clarification by CBEC vide: Circular No.166/1/2013 –ST, dated 1 January 2013.
1. Under the Point of Taxation Rules 2011, the point of taxation generally is the date of issue of invoice (as issued under Rule 4A of the Service Tax Rules 1994) or receipt of payment whichever is earlier.
2. Therefore no tax point arises on account of such reminders, The reminders not being invoices would not invite levy of service tax. In case of issuance of any invoice, point of taxation shall accordingly be determined.
3. This clarification is issued only for life insurance sector.
2. Clarification in respect of transportation of milk by rail/vessel
Issue: Indian Railways seeks clarification as to whether service by way of transportation of milk by rail is covered by Notification No.25/2012-ST dated 20.06.2012, serial number 20(i) ( food stuffs).
Clarification by CBEC vide: Circular No.167/2/2013 –ST, dated 1 January 2013
The service by way of transportation of milk by rail or a vessel from one place in India to another, is covered by the Notification No.25/2012-ST dated 20.06.2012.
No comments:
Post a Comment