CENVAT CREDIT on service tax paid on insurance cover of empl

This query is : Resolved

CA Deepak Jain (Querist)
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25 March 2009 1. Whether CENVAT CREDIT can be taken on service tax paid on insurance premium amt. of following policies.

A. WorKmen compensation
B. Group Mediclaim Policy
C. Group Personal accident policy
D. Motor Car insurance premium

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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25 March 2009 Yes, It can be taken.

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Dayal

Dayal (Expert)
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25 March 2009 Normally credit is not deniable.

However in a recent open house by TIOL it was stated by the authorities that such credit will not be allowed as it is not in relation to the provision of services / manufacture of goods and hence stands to be deniable.

But few consultants are of the opinion that employees contribute to the activities and therefore for all purposes it cannot be subject to denial.

You may however take the credit but restrict the utilisation till the matter is clarified by the board.

This is the most can be said against your enquiry

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