INSURERS SPAREDFROM SERVICE TAX

Life insurance companies are set to be spared of paying service tax on fund management fees. This is a good news for policy holders investing in unit-linked insurance plans (Ulip) as they will not have to take a hit on their returns. The Central Board for Excise & Customs (CBEC) has accepted IRDAs view that fund management fees should not attract service tax because managing a policy holder’s money is a part of an insurers business.