Service
Tax Exemption for Janata Personal Accident Policy
[Service
Tax Notification No. 133 dated 18th January 2011]
Subject: - Service tax
exemption for Janata Personal Accident Policy.
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.
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 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.
3. Trade
Notice/Public Notice may be issued to the field formations accordingly.
F.No.332/36/2010-TRU