Cerdit on service tax

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C.A.Anshu

C.A.Anshu (Querist)
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19 November 2011 I wanted to inquire whether the credit of service tax will be available on Erection All Risk insurance policy. Our Company is providing erection and commissioning service relating to solar power plant, the insurance policy taken is of sites in which erection work is carried on.
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PUNEET GOYAL

PUNEET GOYAL (Expert)
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19 November 2011 As per rule 2(l) of CENVAT credit rules, 2004, input service, inter alia, means any service used by a provider of taxable service for providing an output service and includes various input services specifically provided. But these specific input services do not includes insurance service. So now question is that how to establish relationship between insurance services and erection and commissioning services as input and output services. You just check out that the what kind of risks are covered by above insurance policy and how u can relate it as input service in respect of output services.