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2018 (9) TMI 1587

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..... ort of services - whether the appellants are liable to pay service tax on the commission retained by them in Indian currency? Held that:- In the appellant’s own case SUPRASESH GENERAL INSURANCE SERVICES & BROKERS PVT. LTD. VERSUS THE COMMISSIONER OF SERVICE TAX, CUSTOM, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL [2015 (9) TMI 1219 - MADRAS HIGH COURT], the very same issue was considered and the .....

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..... was noticed that in respect of services rendered as insurance intermediary to companies situated abroad while remitting the premium to them, appellants were retaining their commission. The appellants were not paying service tax on the commission retained by them on the ground that retaining the commission for the service rendered to foreign insurance companies has to be treated as amount received .....

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..... of a re-insurance broker is to support the contract of re-insurance between a re-insured and a re-insurer. The re-insurer may either be located in India or abroad. The appellant receives the re-insurance premium from the ceding companies in India, retains certain portion of the same as commission and remits the rest to the re-insurers in rupees if the re-insurer is an Indian re-insurer, and in fo .....

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..... it the net premia overseas, or they could simply remit the gross premia and get back their brokerage in the form of remittance through banking channels. The Reserve Bank of India has expressed the view that since the principle underlying in both the transactions is the same, there is no difference between the two modalities of brokerage payment and that RBI had also observed that former method is, .....

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