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Cenvat credit of service tax on repair of motor vehicle

Rambabu (CA Practice ) (30 Points)

24 January 2017

Insurance Company can take the CENVAT Credit of Service Tax on Invoice in relation to repair of Motor Vehicle Example: Mr. X (Inssured) file a Claim in relation to Accident of Motor Car to XYZ Ltd (Inssurance Company). ABC Ltd repair the Motor Car and issued the invoice and charged the Service Tax on Labour Part. Who Can Claim the Credit of Service Tax charged by ABC Ltd. XYZ Ltd (Inssurance Company) or Mr. X (Inssured)

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7 Replies

Rambabu (CA Practice ) (30 Points)
Replied 28 January 2017

Plz reply. Koi nhi h is group mae Service Tax Expert.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195623 Points)
Replied 28 January 2017

Not a service tax ....; but as per my understanding, as the service tax is paid by insurance company, M/s. XYZ can take Cenvat credit.

Rambabu (CA Practice ) (30 Points)
Replied 28 January 2017

Thank you Sir, my opinion is also same, but the repair bills are in the name of Mr. X (inssured), XYZ (Insurance company) is Reimburse the expenses in the form of Claim.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195623 Points)
Replied 28 January 2017

True, but department would not allow any cenvat credit to Mr. X, when the amount is not paid by him. He can take cenvat credits over the premium paid, if eligible.