Service tax rates for New Plans

Service tax rates for New Plans

CO/F&A/Service tax/102                                                                                20.12.2013

Circular No.EDA/ZDB/967

TO ALL THE OFFICES OF THE CORPORATION

RE: Service tax rates for New Plans

We herewith state below the service tax rates for the below mentioned plans.

LIC’s Money Back Plan -20 years, LIC’s Money Back Plan -25 years, LIC’s New Endowment Plan, LIC’s New Jeevan Anand Plan:

Since these are Endowment plans, the service tax (including Education cess and HSEC) shall be charged @3.09% on the first premium and other first year premium and 1.545% on the renewal premium

LIC’s New Bima Bachat Plan, LIC’s Single Premium Endowment plan:

Since these are Endowment plans, the service tax (including Education cess and HSEC) shall be charged @3.09% on single premium.

LIC’s New Jeevan Nidhi Plan

Since this is a Pension plan, service tax shall be charged @3.09% on the first premium, other first year premium and single premium and 1.545% on the renewal premium.

Kindly note that the provision of Service tax mentioned in our circular ref: ZDB/EDA/966 dated 20.12.2013 shall continue to apply.

Yours faithfully,

Executive Director(F&A)