18 November 2011
My company had purchased a machine and given Carriage/Transporting the same at site. The transporter charged 4,00,000, the have provided Transit & Fire (ONE YEAR) Insurance of 70,000 as Free on cost and also the same is not mentioned in Tpt. Bill. The Insurance Cover/Policy/premium receipt shows Service Tax charged by the Insurer Company. We had not paid any single paisa separately for such Insurance but entire 4 Lacs paid against transport bill. Please advice:- 1. whether we can avail the Cenvat credit for Service tax liability ? 2. Should the cost of Machine should be reduced by such free insurance value ?
CAclubindia
