RAJENNDRA JAMDADE (ACCOUNTS MANAGER) (31 Points)
05 September 2011DEAR FRIENDS,
I AM WORKING IN MANUFATURERS CO, WE USE TO TAKE CENVAT CREDITE ON INPUT SERVICESS,& RAW MATERIALS ALSO, WE ARE DOING BOTH ACTIVITIES, i.e. MANUFATURING AS WEL AS JOB WORK PROCESSING WORK UNDER NOT. NO 8/2005 OF SERVICE TAX ACT & RISE THE BILL TO PRINCIPAL SUPPLYERS AS A JOB WORK CHARGES,UNDER NIL SERVICE TAX. IS THIS A CORRECT PROSEGUIR ?
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 05 September 2011
If you have common input services/inputs for both own production and job production Rule 6(3) of CCR is applicable . You have to proportionately reverse credit attributable to job work as the same is exempted under service tax.
CAclubindia
