https://www.taxtmi.com/article/detailed?id=7334 Insurance premiums paid by banks to insure deposits qualify as an input service under Rule 2(l) of the CENVAT Credit Rules by virtue of the inclusive category of financing, and judicial precedent supports treating banking and financial services within that limb. Although deposits are in the negative list, the inclusive examples in the definition do not require a separate nexus test; therefore deposit-insurance premiums establish sufficient connection to banks' taxable output activities. Availability of credit remains subject to the statutory reversal regime applicable to banking companies, which permits either a standard reversal method or reversal on actual basis where the option applies. en-us Wed, 22 Mar 2017 07:49:29 +0530 Wed, 22 Mar 2017 07:49:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=7334 Insurance premiums paid by banks to insure deposits qualify as an input service under Rule 2(l) of the CENVAT Credit Rules by virtue of the inclusive category of financing, and judicial precedent supports treating banking and financial services within that limb. Although deposits are in the negative list, the inclusive examples in the definition do not require a separate nexus test; therefore deposit-insurance premiums establish sufficient connection to banks' taxable output activities. Availability of credit remains subject to the statutory reversal regime applicable to banking companies, which permits either a standard reversal method or reversal on actual basis where the option applies. Articles Cenvat Credit Wed, 22 Mar 2017 07:49:29 +0530 https://www.taxtmi.com/article/detailed?id=7334