LIC customers have to pay service tax at 3.9 percent per annum per policy. However, this applies to people who are wishing to purchase a new LIC policy. Earlier the situation was different, LIC was paying service tax of 3 percent from the pool of money that they collected from their investors.
LIC is discontinuing its 34 policies and putting new policies. However, these 34 policies holders are exempted from paying service tax.
Source – The Hans India