Government of India
Ministry of Finance
(Department of Revenue)

Notification No.35/2011 – Service Tax

New Delhi, the 25^th April, 2011

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-

1. (1) These rules may be called the Service Tax (Third Amendment) Rules, 2011.
   (2) They shall come into force on the 1^st day of May, 2011.
   
   
2. In rule 6 of the Service Tax Rules, 1994, for sub-rule (7A), the following sub-rule shall be substituted, namely,-
   “(7A) An insurer carrying on life insurance business shall have the option to pay tax:

1. on the gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of policy holder, if such amount is intimated to the policy holder at the time of providing of service;
   
   
2. 1.5 per cent of the gross amount of premium charged from a policy holder in all other cases;
   towards the discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the said Act:

Provided that such option shall not be available in cases where the entire premium paid by the policy holder is only towards risk cover in life insurance.”.

(Sanjeev Kumar Singh)
Under Secretary to the Government of India
[F. No. 334/3/ 2011 – TRU]

Note.- The principal rules were notified vide notification no. 2/1994-Service Tax, dated the 28^th June, 1994, published in the Gazette of India, Extraordinary vide number G.S.R. 546(E), dated the 28^th June, 1994 and last amended vide notification No.25/2011-Service Tax, dated the 31^st March, 2011, vide number G.S.R. 184(E), dated the 31^st March, 2011.