Cenvat Credit
This query is : Resolved
Owais Iqbal
(Querist)
17 July 2009
As per Rule 6 if a assessee is not maintaining separate record for taxable service and exempted service than he is required to pay an amount equal to 8% of exempted service provided.
But There is no clarification if an assesse is in the business of trading and also providing taxable service how much of input credit will be allowed to him for inputs.
But There is no clarification if an assesse is in the business of trading and also providing taxable service how much of input credit will be allowed to him for inputs.
Arbind Aggarwal
(Expert)
24 July 2009
NO CREDIT CAN BE TAKEN FOR THAT PORTION WHICH IS ATTRIBUTABLE TO TRADING TURNOVER.
RULE 6 IS FOR TAXABLE AND EXEMPTED SERVICES NOT FOR TRADING.
TOTAL CREDIT 100
TRADING 5 LAKH
EXEMPTED 5 LAKH
TAXABLE 10 LAKH
THEN THIS CREDIT WILL BE REDUCED BY 100*5/20 THEN RULE 6 WILL BE APPLIED FOR THE BALANCE CREDIT OF 75.
RULE 6 IS FOR TAXABLE AND EXEMPTED SERVICES NOT FOR TRADING.
TOTAL CREDIT 100
TRADING 5 LAKH
EXEMPTED 5 LAKH
TAXABLE 10 LAKH
THEN THIS CREDIT WILL BE REDUCED BY 100*5/20 THEN RULE 6 WILL BE APPLIED FOR THE BALANCE CREDIT OF 75.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
