"We would like level-playing field in terms of service tax between ULIP and mutual fund schemes," Insurance Regulatory Development Authority (IRDA) Chairman J Harinaryan told PTI here.
Harinarayan also demanded the government to bring long term (15-20 years) debt securities in the market.
Besides, he said the government should consider giving preference to long-term investment, 7-8 years, within Rs one lakh saving limit for income tax exemption purposes.
Insurance companies are asking for limiting service tax on the ULIP products to only fund management charges.
They say service tax on entire range of charges on ULIP schemes would widen the disparity between ULIP and mutual fund schemes.
At present, service tax on mutual funds is levied on asset management charge.
Insurers said in case of ULIP, the service tax should be levied on fund management charge which is comparable to the asset management charge of mutual funds.
Source: Press Trust Of India IRDA seeks equal treatment to ULIP and MF schemes in Budget
By ugesh sarkar, Section Insurance & IRDA
Posted on Sun Jun 14, 2009 at 10:13:55 PM EST
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