Tax Related Issue.. Please Guide

Hello Everyone,
A friend of mine is working in a proprietorship company. I am asking this issue on behalf of him. His company pays half yearly insurance premium for owner's four wheeler. Can he take input service tax on premium amount.

How premium paid for insurance will be linked to service tax he is paying for other services? He has paid service tax on premium for the services availed. Both are separate. Can't be claimed for input credits.
Pon

Dear Atul,
It's understood that your friend uses a car of your owners' for which insurance premium is being paid by the owner and the premium thus paid includes Service Tax of !2.36 %. Am I correct ? If yes, NO,
since the real owner of the car (as per the RC records) is your friend's owner and the owner only is entitled to avail the input credit of the ST paid in the premium. Because only the registered owner only by all means the rightful assessee. However, Let me know how does ST comes into the picture here, do you mean Income Tax ? If the query is on the IT then a premium paid on a vehicle is not relevant to personal IT ( However the same may be considered for business income/expenses and deduction while computing IT.) So make your query more clear to enable us to indicate appropriate opinion.

First of all, let us know what about the other half Insurance Premium, who is paying it. If the company pays the entire amount of Insurance Premium, then too how will you show the Car being used for Business Purpose, if you can satisfy the Tax Authorities with proper records, then you can go ahead, otherwise it is mere wastage of time and energy, as such the amount will be meager hardly in hundreds

Insurance companies charge service tax on the premium charges. I think he is asking about the input ST credit for ST component paid on the premium charges.
Pon