I have one doubt, pls. help me in this. Suppose if company is into trading business on which VAT charged & also into service business on which service tax charged. however they are not maintaining seperate books of accounts of two business, so how can we claim set off of service tax paid on common input services. what should be formula to claim input credit set off under this condition.
Second in reverse charge mechanism applicable from 1-7-12 can service receiver claim set off of his share of service tax, or whether he has to pay without setoff.
There is no requirement to maintain separate books of accounts for entity engaged in business of sale of goods with VAT and providing service on which service tax is applicable.
You can avail CENVAT on all the input services and Excise duty on Goods and Capital Goods used in or in relation to provide taxable service Reverse charge is required to be paid in cash but CENVAT credit can be clauimed for such payment to be adjusted against service tax otherwise payable