Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
Circular No. 133 / 2 / 2011 – ST
North Block, New Delhi
18th January 2011
To
Chief Commissioners of Central Excise and Service Tax (All),
Director General (Service Tax),
Director General (Central Excise Intelligence),
Director General (Audit),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).
Madam/Sir,
Subject: - Service tax exemption for Janata Personal Accident Policy – reg.
A clarification has been sought as to 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.
- 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
Rs. 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.
- Trade Notice/Public Notice may be issued to the field formations accordingly.
- Please acknowledge the receipt of this circular. Hindi version to follow.
(J. M. Kennedy)
Director, TRU
Tel: 011-23092634
F.No.332/36/2010-TRU