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Cenvat Credit on Service Tax

Radhika (CA Job) (64 Points)

10 May 2007

If a company pays the service tax on the employees group insurance scheme can that tax amount be availed as the cenvat credit?

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9 Replies

Manjunath (58 Points)
Replied 10 May 2007

Since the definition of input service is very vast, you can avail Cenvat on service tax paid on group insurance of employees.

Service Tax (13 Points)
Replied 10 May 2007

yes we can availed cenvat credit on service tax paid on group insurance of employees.

Kamal Kishor Mittal (16 Points)
Replied 10 May 2007

No Cenvat credit of service tax paid on employees group insurance scheme be taken since there is not any nexus.
CA KAMAL KISHOR MITTAL
9313464166

K L Narasimham (CHARTERED ACCOUNTANTS) (54 Points)
Replied 10 May 2007

Sure, you can

Rachel (22 Points)
Replied 10 May 2007

Yes You can Avail

Shipra (25 Points)
Replied 10 May 2007

yeas dear it can b availed as it is for the group insurance of employees ..it is havin a direct nexus wth the business of asessee..to keep it running its employees are to be safe therfore its is available.

Vrajalakshmi (16 Points)
Replied 10 May 2007

Dear Ms. Radhika

In case you have taxable out put service it will be useful to take credit provided the input service is used by the service provider in providing the said service. If there is a mixed bag of exempt and non exempt service the input service tax will be limited to only 20%

Anwar (13 Points)
Replied 10 May 2007

Dear Ms. Radhika

Can we get the Credit Cenvat input for Authorized Service station ?
If we have not yet availed Credit Cenvat input since inception of the company /registration now we can avail this .for prv years also?

Ramkrishna (Accountant) (325 Points)
Replied 10 May 2007

yes ms. radhika has treid to solve the probelm but i think 20% eligility is in case of telephone expenses only.it is evident that in case one is producing both dutiable and non-dutiable goods n if takng credit on such expenses he has maintain the sepearte stock register for both produces.similiarly proportinate credit can be claimed but remeber " onus of proof" lies with the assesse only.