Re-insurance service is an input service for providing output service of life insurance

Brief of the case:

• The Hon’ble Karnataka HC in the case of CCE Vs. PNB Metlife India Insurance Co. Ltd held that reinsurance service is an input service for rendering insurance service because the reinsurance is an integral part of insurance service rendered by the insurance co. and cannot be termed as an activity post completion of insurance services.
• Hence, the Cenvat credit of service tax paid on procuring reinsurance services can be claimed.

<

Please become a Premium member. If you are already a Premium member, login here to access the full content.