Input Credit

[Indrajit Mondal]

Dear All,

We also paying telephone bills/insurance premium for car and machineries which also includes service tax can we claim the input credit against the output liability.

Please reply..

AI Summary

Input Tax Credit Available for Business Phone and Machinery Insurance, Not for Personal Vehicle Insurance: Cenvat Credit Rules 2004. An individual inquired about claiming input credit for service tax paid on telephone bills and insurance premiums for cars and machinery. A respondent clarified that input tax credit is available for service tax on telephone charges if the phone is used for business purposes and on insurance premiums for machinery used in manufacturing. However, credit cannot be claimed for service tax on insurance premiums for motor vehicles used personally by employees or directors, as per Cenvat Credit Rules, 2004. Another participant agreed with this explanation.