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February 2013

Notices/Reminder letters for renewal premium to life insurance policyholders are not invoices

By Tarun Ghia, Brijesh Cholera, Pratik Mehta, Chartered Accountants
Reading Time 1 mins
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Circular No.166/1 /2013

ST It is clarified that reminder letters/notices being issued to the life insurance policyholders to pay renewal premiums are not invoices within the meaning of Rule 4A of the Service Tax Rules, 1994 and consequently, no tax point arises on account of issuance of such reminders and hence, it would not invite levy of Service Tax.

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