Sir/Madam,
Please let me know whether an employer can claim ITC on the LIC premium paid towards its employee.
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ITC on GROUP LIC
Replies (6)
if it is obligatory on employer to provide such service to employee, credit is allowed. Otherwise no
No credit is allowed on LIC except where the government notifies the services which are obligatory for an employer to provide under any other law for the time being in force. Refer Section 17(5)(b)(iii) of CGST Act.
Thank you so much for your valuable replies. Can you please let me know further as to whether Any obligatory services have been notified by the government yet in this respect?
if not, will it be fine if we directly term this credit as ineligible as on today's date?
Please reply!
if not, will it be fine if we directly term this credit as ineligible as on today's date?
Please reply!
Dear Sir,
As per Sec. 17 of CGST Act : the input admissable only when its obligatory under law:
(iii) rent-a-cab, life insurance and health insurance except where ––
(A) the Government notifies the services which are obligatory for an
employer to provide to its employees under any law for the time being in
force; or
However LIC for purely employee personal Health/ Medical/Life is not admissable.
regards,
Bhavya.P
ITC available for the Group Insurance which is taken for Employees benefits expenditure. Company can avail the ITC benefits...
ITC available only if the Government notifies the services which are obligatory
for an employer to provide to its employees under any law for the time being in
for an employer to provide to its employees under any law for the time being in
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