CENVAT Credit on Insurance Policy of Employee of the firm

[Bhavesh Patel]

Whether CENVAT Credit is available on Insurance Policy has taken by the employer for the Employees under Workmen Compensation Act??

The employee is deployed by the employer (Service Provider) at a particular place for providing the services and to cover the risk the employer has taken Insurance Policies in the name of employees based on their salaries under the Workmen Compensation Act. Whether Service Tax paid on such Insurance Policies is allowed as CENVAT Credit to the employer or not??

Whether CENVAT Credit is available on Insurance has taken for the vehicle used for the purpose of business??

[KASTURI SETHI]

Dear Querist,

With reference to your query No.1, pl. go through Para No. 6 (highlighted portion) of the following judgement:-

2017 (50) S.T.R. 22 (Tri. - Mumbai) = 2016 (12) TMI 164 - CESTAT MUMBAI ATLAS DOCUMENTARY FACILITATORS COMPANY (P) LTD. Versus C.S.T., MUMBAI-I

 

 

[Ganeshan Kalyani]

In the case law cited by Sri. Kasturi Sir, cenvat credit on insurance policy is allowed.

AI Summary

CENVAT credit on insurance premiums may be allowed when insurance constitutes an input service for taxable business activities.
The document poses whether service tax paid on insurance policies taken by an employer for employee coverage under the Workmen Compensation regime qualifies as admissible CENVAT credit. Citing an appellate decision, the responses state that CENVAT credit is allowed on such insurance premiums. A related question on vehicle insurance is answered consistently: insurance procured for business use may attract CENVAT credit where it constitutes an input service for the taxable activity.