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Service tax credit on vehicle insurance

This query is : Resolved 
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(Querist)
20 January 2012 Hi,

Whether under current definition of input service, credit on service tax paid on vehicle insurance (vehicle given as perk car to employees) is allowed or not?

Some cars are on the name of company and some are not.

Kindly revert ASAP.

Regards

Ajay Tarate
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Arun Gulati

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Arun Gulati (Expert)
21 January 2012 No, under the current scheme of CCR, 2004 as amended in 2011 definition of Input services specifically excludes credit of tax paid on services when such services are used primarily for personal use or consumption of any employee.Therefore, in my view, you are not entitled for credit on car given as perks to employees.
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Ajay Tarate

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Ajay Tarate (Querist)
23 January 2012 Thanks for prompt reply.

If the company is in automobile business and carriage vehicles (like container trailer etc. )are used for transporting the vehicles manufactured.
Then whether service tax on insurance of such carriages vehicles is allowed?

Regards
Ajay Tarate
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Aashok Kumar Sharma

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Aashok Kumar Sharma (Expert)
24 July 2025 https://docs.google.com/document/d/1bJpp98soTTL8Khl6lhCryixb8TJ0YGUywL-crtfYNHA/edit?usp=sharing
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