Credit of service tax paid on insurance of car

[Asked by Guest]

Can we take the credit of service tax paid on insurance of car under cenvat credit rule.I am using the car for the purpose of my business/profession.Answer the issue assuming two situation. one i am a service provider and second when i am a manufacturer.

[Surender Gupta]

In may opinion you can avail the Cenvat Credit in both situations on insurance of car, provided the car is used for business purpose.

AI Summary

Cenvat credit on car insurance is claimable when the vehicle is used for business by service providers or manufacturers.
Service tax paid on motor vehicle insurance is eligible for Cenvat Credit when the insured car is used for business purposes; this credit may be availed by both service providers and manufacturers provided the vehicle's use is demonstrably for business or professional activities.