Irda to charge tax for service to players
The Insurance and Regulatory Development Authority (Irda) will charge service tax from industry players on providing services such as registration and renewal. The regulator is required to collect service tax from its insurance companies, brokers and agents, said an Irda notification.
TPAs, insurance repositories, web aggregators, referral entities and surveyors too will have to pay tax for availing services like grant of registration, licences, renewals and so on, the Irda said.
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.
The proposals were approved by Irda at its meeting held on Tuesday. However, it did not disclose the rate of service tax applicable to individual categories.
At present, the rate of Service Tax is 12%.