Menu

SERVICE TAX AND SWACHH BHARAT CESS

Apr 14, 2016 at 10:25AM

Government vide Notification No. 22/2015-Service Tax dated 6 November 2015, has imposed a  Swachh Bharat Cess (SBS)at the rate of 0.5% on all services, which are presently liable to service tax with effect from 15 Novemeber,2015. Hence the revised rate (effective from 15/11/2015) shall be 14% Service tax plus 0.50% SBS i.e. 14.50%.

Impact of Swachh bharat cess (SBC) on Insurance premium

Insurance service falls under category of services on which service tax is levied, there for all the insurance premium which are falling due on or after 15/11/2015 will levied by the the rate of 0.5% of the insurance premium. New rates of tax on insurance premium is as follows:

Service Tax rate including Swachh Bharat cess (SBC) are as follows:

Category

Service tax

Service tax with Swachh Bharat cess

Term insurance premium

14%

14.5%

ULIP charges

14%

14.5%

Health insurance premium

14%

14.5%

Rider Premium

14%

14.5%

Endowment:First year premium

3.5%

3.625%

Endowment:Renewal premium

1.75%

1.8125%

Go Back

Comment


नवीनतम - POST