ITC on employee insurance

amlu___ 002 (CA Article Trainee) (84 Points)

25 April 2020

Can a employer take ITC on Employee Compensation Insurance policy ?

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Ankit chaturvedi (CA in Practice) (241 Points)
Replied 25 April 2020

Can be claimed as itc only when the Government notifies it as services which are obligatory for an employer to provide to its employees under law.

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 25 April 2020

Generally, NO = Blocked credits Sec 17(5)

BUT

if such insurance is obligatory for the employer under any act for the time being in force then ITC CAN BE AVAILED .

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