Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value
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Input tax credit reversal not required for premium portions excluded under Rule 32(4) valuation for life insurance policies. The portion of premium excluded from taxable value under Rule 32(4) for life insurance policies is a valuation outcome and is not thereby converted into an exempt or non taxable supply; consequently, reversal of input tax credit under Section 17(1) read with Rules 42 and 43 is not required for that excluded portion.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit reversal not required for premium portions excluded under Rule 32(4) valuation for life insurance policies.
The portion of premium excluded from taxable value under Rule 32(4) for life insurance policies is a valuation outcome and is not thereby converted into an exempt or non taxable supply; consequently, reversal of input tax credit under Section 17(1) read with Rules 42 and 43 is not required for that excluded portion.
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