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Trade Notice No. 02/2011 - Service Tax/SH. Dated Shillong, the 25th January’2011.
Subject: - Service tax exemption for Janata Personal Accident Policy– reg. ********* Attention of the members of Trade, Industry and all others concerned are hereby invited to the Board’s Circular No. 133 / 2 / 2011 – ST issued vide F. No. 332/36/2010-TRU dated 18.01.2011 wherein TRU has clarified on the scope and meaning of the description namely ‘Janata Personal Accident Policy (JPAP)’ appearing in the Notification No. 3/1994-ST dated 30.06.1994. 2. The issue has been examined. The representation seeking clarification arises in the context of customized group insurance policy schemes known as JPAP, floated by various insurance companies as specified by state governments, to extend risk cover to certain specified target populations, under varying terms of insurance. Generally, a standard JPAP is an individual oriented policy with a fixed ‘sum assured’. The sum assured in these JPAP policies is often as low as ` 25,000/-, so that even people without regular income can afford to purchase a risk cover for themselves. For the insurers, JPAP offers a vehicle to fulfill the ‘rural or social sector’ obligation prescribed by the Insurance Regulatory Development Authority (IRDA). Since a description of JPAP Policy is not available in the relevant notification, it is clarified that customized group JPAP insurance schemes floated by various insurance companies as per the specifications of state governments concerned, to extend risk cover to target populations, and to fulfill the prescribed ‘rural or social sector’ obligation, are covered by the subject service tax exemption. 3. Hindi version will follow. AUTHORITY : Board’s Circular No. 133 / 2 / 2011 – ST Issued vide F.No. 332/36/2010-TRU, Dated 18th January 2011 Disclaimer: Though care has been taken to reproduce the text in its original form, in case of any inadvertent mistake, the above mentioned circular may be referred to.
(S. R. Baruah) Commissioner |