Dear Sir,
From 1st October,2014 Service tax is applicable on insurance company and whereby insurance company need to pay service tax on commission paid to agent. Certain company do not bear the Service Tax value and deduct the said amount from agent commission itself. it is not the purpose of levy of service tax but company follow the said system and which is legal treatment so there can not be any questions on it. However the deduction you can certainly negotiate with your company and try to reduce the liability by compelling them to pay service tax on it. As company always get credit of such tax paid and they have double benefit on it.
