Product Liability for Co.s products & Public Liability as per Act.

[Pradeep Jain]

Dear Sir,

Wish to know that that CENVAT credit of Service Tax is available on Product liability for Company and Public Liability for company product as per Act , is eligible or not.

Please advise

Regards

Pradeep Jain

AI Summary

CENVAT Credit Available for Service Tax on Product and Public Liability Insurance Expenses Under Relevant Act A query was raised regarding the availability of CENVAT credit on service tax for product and public liability insurance as per the Act. One respondent indicated that if the insurance premium relates to service tax, credit should be available. Another explained that product and public liability stem from the Law of Torts and Consumer Protection Act, highlighting scenarios where liability arises, such as defective products causing harm. They concluded that expenses related to legal actions safeguarding company interests are linked to business operations, thus service taxes on these are eligible for CENVAT credit.