Can we avail Service tax input credit on goods inusrance, vehicle inurance & plant and machinery insurence

[Srivatsan Krishnamachari]

Dear Experts,

we are manufactures & Service Providers we have centralized Service tax registration, pls. give your valuable replies for below mentioned queries with indicating rules.

1. we insured our vehicles which carry goods and staff, can we claim service tax input credit on vehicle insurance?

2. we insured plant and machinery and goods, can we claim service tax input credit on this?

please give your valuable advises on the above two issues as early as possible.

thanking your sirs.

BR//

Benarjee  G

[yash arya]

Dear Sir,

Under Rule2(1) of Cenvat Credit Rules,Input service means input services used for providing taxable output service or used by manufacturer, directly or indirectly, in
relation to manufacture or clearance of final product upto the place of removal. Hence,Insurance for machinery,building and transportation of inputs, capital goods and final products upto place of removal (except insurance of motor vehicle used for staff etc) is eligible for cenvat credit. Trust this would suffice. 

- Shekar Rajagopal

AI Summary

Cenvat credit eligibility: insurance for machinery, buildings and goods transport qualifies, but staff motor vehicle insurance does not. An input service under the Cenvat rules is one used for providing taxable output services or by a manufacturer in relation to manufacture or clearance up to the place of removal. Insurance of machinery, buildings, capital goods and transportation of inputs or final products up to the place of removal is eligible for credit, whereas insurance of motor vehicles used for staff or private purposes is excluded from credit.