Service Tax Rebate

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dinesh upadhyay (Querist)

22 October 2010 Hi,

Our company has done Insurance for Employees & their dependents, premium paid 5 Lakh + Service Tax of Rs. 51,500/-.

My question is this Can our company take service tax input credit of Rs. 51,500/- or not, please explain.

Thanks & waiting for your reply...

Dalton

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

22 October 2010 yes.credit can be taken

The rule2(1) gives the inclusive definition of input service all services used for activities relates to business are input services, the definition not says activites relating to business pertaining to manufacture or provision of output service.so all input service used in activites relating to business are input services

dinesh upadhyay

dinesh upadhyay (Querist)

25 October 2010 Thanks for your reply,

I would like to confirm that can company take service tax input credit of premium paid for Employee's dependent also or not.

Thanks

Dalton

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

25 October 2010 In this case my view is different, for paying Insurance premium for employee`s dependent may not be related to business

but other experts view also, invited

dinesh upadhyay

dinesh upadhyay (Querist)

26 October 2010
Sir, Thanks for your reply. I also request to other respected Experts to give their opinion, Can company take service tax input credit of premium paid for Employee's dependent also or not.

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