27 January 2016
Please refer the circular and then ans my q http://indiabudget.nic.in/budget2014-2015/ub2014-15/cen/cirst178414.pdf
In the example given of distribution of credit among A B C & D, credit has been distributed to Unit C which is "exclusively" engaged in providing exempted services.
But in Rule 7 it is mentioned that "Credit of service tax attributable to service used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed"
10 March 2016
Please note in Budget 2015 Rule 7 has been amended.. With respect to old provision ..credit is distributed to C since that much credit is not eligible ..
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