Can Avail Service Tax Input Credit of Product Liability Insurance

[Uttam Javia]

Can I avail Service Tax of Insurance Policy for Product Liability Insurance,

which is covered a manufacturing product export to outside of India in case of any defect company has to re-call and pay all losses to buyer.

AI Summary

Can Companies Claim Service Tax Input Credit for Product Liability Insurance on Exported Goods? A discussion on a forum addresses whether a company can avail service tax input credit for product liability insurance related to exported goods. The initial query raises concerns about the eligibility for such credit when the insurance covers potential liabilities arising after goods have left the place of removal. Responses clarify that if the insurance service is provided in India before the goods are exported, and the insurance company is based in India, the credit is generally permissible. The discussion references specific rules and a circular, emphasizing that eligibility depends on the insurance being procured before goods are handed over for export.