How much is the commission for LIC agent?
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How much is the commission for LIC agent?
Though, Agents earn the commission for the policies they sale. LIC offers 25\% to 35\% commission on the policy premium for the first year, then 7.5\% for 2nd & 3rd Year + 5\% till the policy maturity.
Is commission GST taxable?
A sales representative receives a commission for each sale of products arranged for the network seller. The sales representative’s commissions are not subject to tax regardless of whether the commissions relate to taxable or zero-rated products.
Do LIC agents get pension?
Group pension Group pension is also available under Lic Agent Benefits.
Is there GST on commission received?
If you make taxable sales or importations through an agent, you’re responsible for the GST. You can claim a GST credit for the amount of GST you pay as a commission to the agency. The agent must pay GST on the commission that you pay them, regardless of how the purchaser pays for the goods or services.
Is GST applicable on insurance commission?
Insurance companies follow reverse charge mechanism on commission income of up to Rs. 20 lakh. Simply put, insurance companies pay GST on your behalf to the government.
Is LIC commission taxable?
It is important to note that the total commission earnings are not subject to tax as there are certain provisions in the I-T act to help one reduce taxable income. While the deduction is available only when the earnings are below Rs 60,000 in a year. “Where life insurance commission earned is in excess of Rs.
How do you calculate 5\% of GST?
How to calculate 5\% GST manually. It is very easy to calculate GST at 5\% rate: just multiple your GST exclusive amount by 0.05.
What will be the GST rate on LIC E term?
GST rate will be 2.25\% on your premium. Purpose of GST is to hurt people in order to enjoy politicians. Sir, I purchased on line E TERM from LIC in Jul 2017, my premium was 23850 annually, this year they added GST @18\% which is around 4300 more .
What is the rate of GST on commission (agent) services?
The rate of GST on commission (agent) services is 18\%. Input credit can be availed on commission paid on these services. GST is not levied in the case of foreign commission agents.
For single premium policy or endowment insurance plan, GST for first year premium amount has been increased from 3.75\% to 4.5\%. Subsequently, for renewal premiums, it will be halved of the first year rate, which is 2.25\%.
What will be GST for LIC Jeevan Labh?
What will be GST for LIC Jeevan Labh, annual premium paid for 1st year was Rs 41963 for Base policy and 42963 as total installment premium. 25-09-2017 11:02:21. GST rate will be 2.25\% on premium.