Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012 Hello All,

Can someone please tell me how to take credit of common expenses incurred while providing both taxable services and exempted service.

vignesh

vignesh (Expert)
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17 April 2012 Hi,

You can claim your credit through proportionate basis.

Durgesh Laddha

Durgesh Laddha (Expert)
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17 April 2012 yes, you can take credit for portion which is used for taxable services only.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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18 April 2012 There are many option available for taking proportionate credit. as contained in Rule 6 of Cenvat Credit Rules, 2004

1. Take full credit of all expenses and then reverse/pay 5% of credit in respect of exempted services

2. IF separate details are available for expenses used in exempted service and that in taxable service then proportionate credit can be reduced.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2012 Thanks everyone

But can you guys please tell me in detail what all different types of books and accounts required to maintain under rule 6(2).