increase in service tax

Increase in service tax on insurance premium from 01/06/2015

It was proposed in in Union Budget 2015 to increase the service tax from 12.36% to 14%. After the Notification No. 14/2015-Service tax dated 19/05/2015 by the government, new servic tax will be effective from 01/06/2015. All the Service including the insurance premium will be dearer from 01/06/2015. The special rates for life insurance service as per rule 6(7A) has been changed. The rate ofservice tax for FY 2015-16 are as under:

Recent Updates: Increase in Service tax on Insurance premium to 15%

New Service Tax rates

S. No.ParticularsExisting rates (Upto 31/05/2015)Revised rates (From 01/06/2015)
A)On gross premium less amount is alloted for investment/savings, if such amount is intimated to the policy holder12.36%14%
B)Where the entire paid for risk cover12.36%14%
C)For all policies not covered under A) and B)
On First year premium3.09%3.50%
On subsequent premium1.55%1.75%

Life insurance service provided under Varishtha Pension Bima Yojana scheme has be exempted wef 01/04/2015.

12 thoughts on “Increase in service tax on insurance premium from 01/06/2015”

  1. Shravan Kumar

    I have purchased 2BHK flat in Pune. Agreement had been registered on 12March’2015 when the Service Tax was 3.09%. Also I paid few part payments. Its under construction and possession would be given by Feb’2016. Now from June’2015, Government increased service tax by 0.41 which make 3.50% S.T from June’2015 on-wards. My builder says I also need to pay the extra amount of 20K rupees as the S.T is increased. But do I need to pay service tax for the flat which i purchased in Feb’2015 and Agreement was done in 12March’2015?? Kindly update me.

  2. Hello
    My self Anjali, I want to ask that how much service tax i have to pay if my monthly LIC premium is rupees 8547 per month.

  3. santosh kumar

    Hello
    My self Santosh kumar, I want to ask that how much service tax i have to pay if my Three month LIC premium is rupees 4170+Service tax three month.

  4. yogendra yadav

    I have taken life ensure policy before 1 Jun 2015 and paid first installment with 12.36 service tex. is same rate will applicable my remaining installment

  5. Hello
    I have LIC jivan mitra policy. And in my premium receipt service tax is 0. Policy is of 30 years. Why there is no service tax?

  6. I have taken policy on 01/04/2014.service tax at that time was 3.09% for first Year & 1.545% for subsequent Premiums.
    What is service tax rate for premium due on dated 01/04/2016.Please clear the rate applicable as on purchased date or current date..

  7. I want to know whether Service Tax paid can also be calculated for Exemption under Section 80C.

  8. Hi,
    Please can anyone provide me a new Service Tax Rate in LIC for 1st year Premium and for renewals.
    Please revert me.
    Thank You.

  9. My shelf elango I have new jevan anand 815 policy.my quarterly premium 14187.I want how much of tax I have to paid

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