Product Liability for Co.s products & Public Liability as per Act.

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..... Product Liability for Co.s products & Public Liability as per Act.
Query (Issue) Started By: - Pradeep Jain Dated:- 1-10-2014 Last Reply Date:- 3-10-2014 Service Tax
Got 2 Replies
Service Tax
Dear Sir, Wish to know that that CENVAT credit of Service Tax is available on Product liability for Company and Public Liability for company product as per Act , is eligible or not. Please advi .....

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..... se Regards Pradeep Jain Reply By Madhukar N Hiregange: The Reply: Terms are not clear. My understanding is the insurance premium ST. If so then credit should be available. Reply By Pradeep Khatri: The Reply: Dear Pradeep, Product liability and Public liability are known as offspring of 'Law of Torts' read with Consumer Protection Act,1986,Civil Laws, and also to some extent Criminal .....

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..... Laws . Such liability may occurs mainly due to following reasons, namely: - * When a product does not fulfill the results as it claimed; * When due to usage of such product, the customer suffers either physically or mentally or falls sick/ill; * Selling knowingly/unknowingly expired products to customers which caused serious injury to them or having negative consequence to public at large; .....

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..... * Selling defective products by claiming that are of high quality or of high standards ( Example: some car companies are nowadays recalling cars due to certain technical faults). Any amount paid on safeguarding the interest of companies by applying, implementing, adopting, managing or pursuing or defending any legal action/litigation for or against the company would be treated as having nexus w .....

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..... ith the production/manufacturing business and service tax would be treated as input services. Hence, such service taxes would be available for CENVAT credit. Regards YAGAY and SUN (Management, Business and Indirect Tax Consultants)
Discussion Forum - Knowledge Sharing .....

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