Cenvat credit on free service with other paid service
This query is : Resolved
18 November 2011
My company had purchased a machine and given Carriage/Transporting the same at site. The transporter charged 4,00,000, the have provided Transit & Fire (ONE YEAR) Insurance of 70,000 as Free on cost and also the same is not mentioned in Tpt. Bill. The Insurance Cover/Policy/premium receipt shows Service Tax charged by the Insurer Company. We had not paid any single paisa separately for such Insurance but entire 4 Lacs paid against transport bill.
Please advice:-
1. whether we can avail the Cenvat credit for Service tax liability ?
2. Should the cost of Machine should be reduced by such free insurance value ?
Please advice:-
1. whether we can avail the Cenvat credit for Service tax liability ?
2. Should the cost of Machine should be reduced by such free insurance value ?
22 November 2011
Any Service tax paid on input service can be taken as credit on the condition that should be mentioned in the Bill.
02 December 2011
Thank you for your good advice.
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