If a Industrial Unit having the production of both Cenvatable and Noncenvatable products, how to segregate the common services for availing the Service Tax cenvat Credit?
Raghuveera (Officer (F&A)) (24 Points)
20 December 2012If a Industrial Unit having the production of both Cenvatable and Noncenvatable products, how to segregate the common services for availing the Service Tax cenvat Credit?
mehul
(ca final student)
(83 Points)
Replied 20 December 2012
hi
if production unit having 2 type of prduction like exempted and taxable following options are available.
1) praportionatly reverse total cenvat in ratio of taxable and exempt
2) prepare saperate books of accounts and take full setoff on taxable services and furgo setoff on exempted output services
3) pay 5% in case of Mfg. industry and 6% in case of Service provider. and scientifically apportion common cost setoff on taxable services and exempted services.
nilesh
(Indirect Tax)
(82 Points)
Replied 20 December 2012
segregate on ratio basis.
see the rule 6(3) of cnevat credit rule - 2004.
CA Ruben Balooni
(Professionalism ™)
(1324 Points)
Replied 20 December 2012
Procedure laid down under Rule 6(3) of Cenvat Credit Rules, 2004 shall be followed.
- Ruben Balooni
CA MANISH AGRAWAL
(Practice)
(539 Points)
Replied 20 December 2012
yes,the procdure of Rule 6(3) of Cenvat Credit Rules, 2004 is applies.
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