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Availability service tax credit on insurance premium payment

shriniwas (Accountant) (70 Points)

22 July 2013

We are the manufacturer of chemicals having factories all over gujarat state. We take insurance policies to cover the risk of fire, & other statndard perils under incurance act to safeguard our Plant, Building, stocks etc.

The service tax paid on insurance premium to general insurance company can be available as set off/ credit treating it as input service.

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9 Replies

CA Kunal Mishra (Consultancy Service) (172 Points)
Replied 22 July 2013

Yes Cenvat credit is available

1 Like

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CA CS Roshan Begrajka (Chartered Accountants) (267 Points)
Replied 22 July 2013

agreed with Mr. kunal

yes cenvat credit is available

shriniwas (Accountant) (70 Points)
Replied 22 July 2013

any case law rule etc. my excise officer denied the same

please give ref.

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 25 July 2013

Insurance premium is a input services you, till the place of removal. If your place of removal is buyer place then you are entitled for credit. you can place relience on the judgement of CCE Guntur Vs. CCL Products (India) Ltd. 2012 (277) ELT 177 (Tri. Bang.) also on CCE Tirunelveli Vs. DCW ltd. 2011 (22) STR 214.

CA Sandeep Soni (Chartered Accountant) (55 Points)
Replied 26 July 2013

As per Cenvat Credit Rules, 2004 Rule 2 subrule (l) input service means any service used by provider of output service for providing an output service and includes services in relation to modernisation, renovation or repairs of factory etc upto the place of removal but excludes

So accordingly, insurance is an input service used in relation to and also it is not specifically exluded. So difinitely in our view service tax credit can be taken in respect of general insurance premium.

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Kamlesh (Student CA Final ) (22 Points)
Replied 02 June 2014

The Pvt Ltd Co has mortgage the property of director for Loan, & service tax paid on the insurance premium of mortgage property by company, the question is whether co can claim service tax credit on it or not?