CENVAT Credit on DICGC Insurance Premium – A tussle between Banks & Revenue Department

  • Category: Service Tax
  • Date: 15-04-2021
  • Writers: CA Payal Bhutada, CA Ravi Kumar Somani

Banks are registered under service tax in the category of ‘Banking and Financial Services’. They collect and pay service tax on its various incomes such as commissions, bank charges, documentation charges, processing fees etc. levied on its customers. However, one of the major revenues earned by the banks is in the form of interest which is outside the purview of service tax as the same is covered in the negative list. Now as per Rule 6(3B) of the CENVAT Credit Rules, 2004, the banking...

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