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

AI Summary

Eligibility for Cenvat Credit on Insurance Clarified: Rule 2(1) Allows Credit Except for Staff Vehicle Insurance. A manufacturer and service provider with centralized service tax registration inquired about claiming service tax input credit on vehicle, plant, machinery, and goods insurance. The response clarified that under Rule 2(1) of the Cenvat Credit Rules, insurance for machinery, building, and transportation of inputs, capital goods, and final products up to the place of removal is eligible for Cenvat credit. However, insurance for motor vehicles used for staff is not eligible.