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CENVAT Credit

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This query is : Resolved

Zehran (Querist)
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25 February 2009 Query 1:
Kindly elaborate on separate books of accounts for the purpose of Cenvat availment. is it enough that client maintains sufficient details in the financials or is it necessary to create a company and books entries in the same

Query 2:
Client is company operating in hotel industry. only few line of income is chargeable to service tax. can input credit be taken at 100%

Arbind Aggarwal

Arbind Aggarwal (Expert)
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01 March 2009 The basic fundamental is services must have some link with the output services either direcly or indirectly for avaling credit.

The inputs credit is availavle only for the services which have nexus with the oitput service.

separate books of accounts means records for taxable and exempted services for the purpose of takinf credit, otherwise rule-6 has to be followed.

arbindaggarwal@yahoo.com

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