Question : LIC SERVICE TAX



(a) the amount spent by LIC for service tax; and

(b) the effect on the bonus of the policy holders as a result of service tax?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANICKAM)

(a): Amount of Service Tax paid by LIC is as under:



Year Amount (Rs. in Crores) 2002-03 56.66 2003-04 543.89 1.4.2004 383.76 to Feb,2005 }


(b): As a result of payment of Service Tax by LIC, the surplus available for distribution to policyhoiders gets reduced and hence the bonus payable to them.