20 December 2012
Dear colleagues, One of my client providing MANPOWER RECRUITMENT AGENCY service, they paid car insurance premium on their own car. Can they claim input credit on that amount for service tax calculation.. kindly let me know whether it Is eligible input credit for this year and last year.
20 December 2012
INput Tax credit is not available on premium paid on the insurance of car, as it is specifically excluded from the perview of INPUT Service Def - 3. Service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not capital goods except when used by a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by him; or an insurance company in respect of a motor vehicle insured or reinsured by such person. Hope your query is resolved.
CAclubindia
