TaxTMI 
TaxTMI 
CENVAT credit availment by life insurance companies reg.
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....rance companies it was observed that the service tax liability has been largely discharged by them using CENVAT credit. Further these companies have accumulated huge balance of CENVAT credit. 2. Till the budget of 2011, as per Section 65(105(zx) of the Finance Act, 1994 taxable service means any service provided or to be provided to a policy holder or any person, by an insurer, including re-insur....
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....5.2011, attracting, thereby the provisions of Rule 6 of CENVAT Credit Rules. 3. As per Rule 6 (1) of the CENVAT Credit Rules 2004, the CENVAT credit is not allowed on such quantity of inputs used in or in relation to the manufacture of exempted goods or for provision of exempted services or input service used in or in relation to the manufacture of exempted goods and their clearance upto the plac....
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....quired to pay an amount equal to eight percent of the value of exempted services being provided by them, for the period 07.07.2009 to 31.03.2010, the payment was to have been made at rate of 6% and for the period 01.04.2010 onwards, the payment on the same was to be made at the rate of five percent It appears that this obligation has not been met by the service providers. On the other hand, the sa....