Going by the provisions of the Finance Bill, 2012, the Insurance Regulatory and Development Authority (IRDA) will collect service tax from January 1. The regulator will collect the tax on several services, according to a release by IRDA on Wednesday.
The IRDA is required to collect the tax for services such as grant of registration, licences and renewals to regulated entities such as insurance companies, TPAs, brokers, agents, insurance repositories, web aggregators, referral entities and surveyors. The authority, at its meeting held on December 31, 2013, has approved the collection of applicable service tax on the services rendered by the IRDA.
The receivers of the above mentioned services are expected to add the service tax component while making the remittances to the authority, the release stated.
