Recovery of Service Tax from Life Insurance Agent's Commission
Sir....I have started working as Life Insurance Agent (LA) with Kotak Mahindra Old Mutual Life Insurance Ltd. since 14th June 2016. Kotak while making the payment of Commission, first Kotak have paid me the Service Tax Component (14+0.5+0.5%) on my Commmission earned with my Commision.The Income Tax @ 5% was deducted over the Gross Commission inclusive of Service Tax component & then Service Tax paid to me has been recovered from the Gross Commission. My total Gross Commission earned is Rs.68250/= w.e.f 14th June to 31st July 2016. I want to know as to whether recovery of Service Tax from me is justified or not, because as far as I understand that since my Commission shall not exceed over 10 Lacs. so I am not qualified for payment/chargeable for Service Tax under the provisions of Service Tax exemtions & Revrsable Scheme. Pl. clarify as to whether recovery of Service Tax from me by KOTAK under these conditions is how far justified. If it is not justified then let me know which Section/Rule of Service Tax is to be quoted & as to how I can request Kotak not to deduct Service Tax from me till I reach to the limit of 10 Lacs Commission slab. Your quick reply shall help lot of people like me getting their Commissions after deduction of Service Tax while they are quite below the limit of 10 Lacs Commission slab.
Thanks.
Avinash Goel
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