Credit of service tax paid on insurance premium

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2014 dear sir's
can service tax paid on insurance premium be claimed as credit against payable on GTA. please advice.thanks in advance

CA Sachin D Jain

CA Sachin D Jain (Expert)
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21 January 2014 Service tax payable on GTA is under Reverse charge basis and whatever tax is required to be paid under Reverse Charge is to be paid through Challan only. Hence, Credit of Service tax can not be utilised to pay service tax on GTA.

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2014 thank you sir,can you please clarify further whether such amount can be used in any other manner i.e t discharge excise duty etc.thanks in advance

CA Sachin D Jain

CA Sachin D Jain (Expert)
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21 January 2014 If insurance premium is for life insurance, the credit of the same will not be available.

However, if the same is for insurance of factory building / machinery / business equipments etc., the same can be claimed as CENVAT credit against output tax liability of service tax or excise.

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2014 once again thanks a lot for your kind gesture