Cenvat credit

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ajayCA (Querist)
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20 October 2011 if any service provider providing more than one services in which some are exempt and other are taxable then in that case what procedures are there to claim the cenvat on input services or input materials used to provide output services ?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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21 October 2011 you have three options :(ref:Rule 6 CENVAT credit rules,2004)
1.Maintain separate accounts for receipt, consumption and inventory of input and input service meant for use in providing output service and the quantity of input meant for use in the exempted and take CENVAT credit only on that quantity of input or input service which is intended for use in in providing output service on which service tax is payable. (or)

IF YOU NOT MAINTAINED THE ACCOUNTING RECORDS SEPARATELY FOR TAXABLE AND EXEMPTED SERVICES

2.you can pay an amount equal to 8% of value of the exempted services (or)

3.YOU can pay an amount equivalent to the CENVAT credit attributable to inputs and input services used in, or in relation to provision of exempted services.

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