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No service tax on surrender charges deducted from ULIP fund
Case Law Details
- Case Name
- Max Life Insurance Co. India Ltd. Vs. Commissioner Central Excise and Service Tax (CESTAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All CESTAT, CESTAT Delhi
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Max Life Insurance Co. India Ltd. Vs. Commissioner Central Excise and Service Tax (CESTAT Delhi)
CESTAT Delhi has held that service tax was not payable on surrender charges deducted from the fund value of policy holder on pre-mature withdrawal, as it was not for asset management but a penalty. The Tribunal, considering clarification by CBEC Circular TRU No. 334/1/2010, observed that the charge pertaining to asset management alone formed the value in case of ULIP policy. It observed that surrender charges are permitted to be levied by IRDA by way of penal charges towards recove...
