Availability of Service tax credit on Insurance premium payment

[Yatin Bhopi]

We are the manufacturer of chemicals having factories all over maharashtra state. We take insurance policies to cover the risk of fire, & other statndard perils under incurance  act  to safeguard our Plant, Building, stocks etc.

The service tax paid on insurance premium to general insurance company can be available as set off/ credit treating it as input service, particularly for the period commencing  on 01.04.2012 ro 31.03.2013 ?

[YAGAY and SUN]

Eligible as in relation to manufacture, provision of taxable services, procurement of inputs, transportation of inputs and final products.

AI Summary

Input service credit on insurance premiums available as set off for manufacturing and related taxable services and inputs.
Service tax paid on insurance premiums to a general insurer is eligible for set off as input service credit when the insurance relates to manufacturing, provision of taxable services, procurement of inputs, or transportation of inputs and final products, subject to use in taxable activities.