Life Insurance Corporation of India's (LIC) policies will become expensive more from October 1, according to a media report. Life Insurance Corporation, which accounts for 83 per cent of the market share, will levy service tax of around 3 per cent on all non-unit-linked products beginning October 1.
The public sector insurer will charge service tax of around 3% on the premiums paid on all non-unit-linked products from October 1, the report added.
LIC collected premiums worth Rs. 1.87 trillion from its non-unit linked polices in 2011-12.
At present, private insurers charge service tax to the premium paid by customers, LIC has not been charging this tax on its endowment and money-back plans.
Recently IRDA (Insurance Regulatory and Development Authority) mandated that service tax shall not be included in the contractual premium, but collected from policyholder separately.
16-Jul-2013
Source : India Infoline
The public sector insurer will charge service tax of around 3% on the premiums paid on all non-unit-linked products from October 1, the report added.
LIC collected premiums worth Rs. 1.87 trillion from its non-unit linked polices in 2011-12.
At present, private insurers charge service tax to the premium paid by customers, LIC has not been charging this tax on its endowment and money-back plans.
Recently IRDA (Insurance Regulatory and Development Authority) mandated that service tax shall not be included in the contractual premium, but collected from policyholder separately.
16-Jul-2013
Source : India Infoline
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