Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2011 Will Cenvat credit be available as input service for service tax paid to insurance co. on premium paid for insurance of gratuity fund

Guest

Guest (Expert)

24 May 2011 Gratuty fund is part or business and therefore, input credit shall be available for service tax paid to insurance co. on premium paid for insurance of gratuity fund .

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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24 May 2011 As per the position up to 31-03-2011 it appears to be an admissible credit. But in the light amended definition of input service, department may challenge the admissibility. This is because services which are primarily for the consumption of employees stands excluded. If amount is material, you can take the credit and fight the case.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2011 Thanks Sir,

But one thing I want to know is that in the last notifications Insurance is mentioned in the negative list of the input services, This Insurance is for what this is not clarified.. please guide me for this..

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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24 May 2011 Specific exclusion if for life insurance and health insurance of employees.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2011 Thanks Sir...