Case against Unique Family Services

The Central Excise and Service Tax Commissionerate in Ludhiana has lodged a case against Unique Family Services for non-payment of service tax. The case has been lodged in respect of referral charges received from three firms — corporate insurance agents of insurance firms.

Unique Family Services generates references (potential insurance customers) through multi-level marketing concept and forwards these to different companies. The companies then pass on the customers to insurance firms and get commission. A major portion of this commission is paid to Unique Family Services for providing prospective customers upon which no service tax is paid. It provided services amounting to Rs 13,00,70,732 from October 2005 to March 2010,upon which,Rs 1,54,26,1371 service tax is payable.