TaxTMI 
TaxTMI 
We are in a service Industry and we have provided Mediclaim Facility to our Employees in the Industry. We avail CENVAT credit on the Input Services. Now are we elegible to avail cenvat even on the Service Tax paid on Mediclaim which is charged by the Insurance Company?
Cenvat Credit - Service Tax paid on Mediclaim
24 Sep 2008 
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Cenvat credit eligibility for mediclaim service tax depends on whether the insurance is an input service used in business.
Whether service tax on employer provided mediclaim/personal accident insurance is eligible for Cenvat credit under Rule 2(l) hinges on whether the insurance is an input service used in the course of business. One position treats mediclaim as business related expenditure creditable as an input service; the department regards it as a welfare measure not eligible for credit. Establishing the factual character of the service as an input service is essential, and disputed denials must be legally contested with supporting case law where available. (AI Summary)
Whether service tax on employer provided mediclaim/personal accident insurance is eligible for Cenvat credit under Rule 2(l) hinges on whether the insurance is an input service used in the course of business. One position treats mediclaim as business related expenditure creditable as an input service; the department regards it as a welfare measure not eligible for credit. Establishing the factual character of the service as an input service is essential, and disputed denials must be legally contested with supporting case law where available. (AI Summary)