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Saturday, 1 July 2017

LEVY OF GOODS & SERVICES TAX (GST) Implications of LIC CO circular on Insurance products



1)Look at the Sumptuous crores of Rs Govt will be able to secure on VARIOUS COUNTS mentioned in LIC CO F & A Circular

Let alone NB Premium which itself, difference between old & new rates will yield to Govt sizeable Revenue 3.75% to 4.5% ie 0.75% rise

Coming to  Renewal Premium, rate 1.875% to 2.250 % ie 0.375% rise,biggest in Volumes & a Kamadhenu for LIC itself,the impact of Revenues to Govt will be the LARGEST RISE & YIELD & will boost Govt Income in a fabulous manner.

Single Premium of Annuity products 1.50% to 1.80% ie 0.30% will be a good gainer for Govt

There are also other miscellenaeous items on which also tax rise is there & will  net a decent spurt in Govt income
I request Sri RKSahni to work out the app Yield for Govt on these new GST announcements ,taking into account latest LIC Statistics  to get a fair & correct idea in quantifiable terms & INCLUDE in our SLP to SC  

It must also be stated that Govt has listed some exemptions under GST too,like VPBYojana, PMs Vaya Vanadan Yojana ,which is a good index  

Not much incisive interpretation has come from LIC, Field Force Agents & Development Officers & critics & analysts

2)**Govt wanted to eat the cake & have it too, when earlier it proposed to increase LIC Valuation Surplus dividend to Govt to be raised from 5 --10% but ultimately wisdom prevailed & it resorted to status quo of 5 % only

*** Govt is stubborn & against Financial & Service Sector, determined not to grant Pension Upgradation, even after copious Notes, Submissions, Arguments ,Data,Logic ,moderate Outlay, Sterling & Superlative performance ,so consitent for decades in all Ratios & Parameters,
knowing full well,OTHERS subscribe to GOVT Pay Commissions bombastic expenditure on DA to employees, DR to Pensioners, Allowances improved & recently allowed with a fabulous expenditure, Pension rise as impreoved OVER 7th PC recommendations with 2.57 % factor inbuilt calculated pension amount 

PLUS value-added pension addition after age 80,NOT ALLOWED to anyother sector,

***NOW wanting to allow Final Pension option to left out employees , a SIZEABLE OUTLAY,compared to outlay on Pension Upgradation, diluting Actuarial assumptions  ,as it pleases the LIC authority in tune with objectives of respective so-called Exercises, but adamant & perverted & obstinate exaggerations for Pension Expenses yearly etc , &

***Forgetting the ALL-PURPOSE & DECISIVE Ratio  on Expenses, all inclusive ,well within Stipulated Ratios by IRDA & this critical determinant must have been given due ultimate importance by DHC Bench, but  DHC ignoring the mighty & untarnished performance of  the mighty Giant, undeclared Navarathna who could comfortably comply with MOST RIGOROUS SOLVENCY MARGIN of IRDA

***That is the paradox created by DHC Judgement,ignoring many crucial factors ,of law, of Constitution, of Fundamental Rights ,of real good quality performance of LIC,receiving many accolades of praise & Awards galore every year,of powerful case laws old,new, latest on PU as the ONLY alternative to rectify & remedy grotesque Anamolies  in pension, 6/7 grades below getting more, DHC with minute analysis laying stress on minuscule differences in DR but ultimately IGNORING FUNDAMENTAL LEGAL PRINCIPLES of EQUITY,EQUALITY & RIGHT ,therefore to END DISCRIMINATION IN TOTALITY & NOT PIECEMEAL,

***also interpreting LIC Pension Rules, 1995 & various Provisions stultifying the correct meaning & import thereof, to the detriment of all pensioners,
even ignoring Hon Justice Dipak Misras 31 March 2016 orders to pay  IR in accordance with Rule 3A ,

***LIC Chairmans unqualified Address & analysis of LIC golden performance in Diamond Jubilee Year for LIC 2016-17 & 
his announcement of 40 % extra Bonus to policyholders & also similar rise in Surplus dividend to Govt as a Capstone ,

3)****What more is required to reinstill reverse ,,impartial ,neutral derivations to quell imperfect conclusions & errors of omission & commission of DHC Bench   & 

,therefore, to rightly earn SC gratitude & blessings on PU causing no damage to LIC Prosperity  & equally no harm to Policyholders interests on bonus or any item of service, whatsoever, & so lift all groups of pensioners from IV Pay Commission mode to near 7th PC ,as we cant reach the moon of CG Pension, because Govt  Family pension is higher than LIC regular pension   

Greetings,

RBKISHORE
VP,AIRIEF


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