(7A)[ An insurer carrying on life insurance business shall have the option to pay tax:(i)on the gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of policy holder, if such amount is intimated to the policy holder at the time of providing of service;(ii)[in all other cases, 3 per cent. of the premium charged from policy holder in the first year and 1.5 per cent. of the premium charged from policy holder in the subsequent years;]towards the discharge of his service tax liability instead of paying service tax at the rate specified in [section 66B] [Substituted (w.e.f. 1.07.2012) by Notification No.36/2012-Service Tax dated 20/06/2012.] of Chapter V of the said Act :Provided that such option shall not be available in cases where the entire premium paid by the policy holder is only towards risk cover in life insurance.] [Substituted (w.e.f. 1.05.2011) by Notification No.35/2011-Service Tax dated 25.04.2011.]
