Input credit availment

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priyanka (Querist)

14 March 2009 In case of input credit availment, is there any option of availing input credit at the ratio of taxable and non taxable?

If yes then how it is computed?

The ratio percentage is applied to output service tax payable amount or input credit avaible amount?

Also how is the same settled / claim...etc??

Please advice it is very urgent....

priyanka

priyanka (Querist)

15 March 2009 In case of input credit availment, is there any option of availing input credit at the ratio of taxable and non taxable?

If yes then how it is computed?

The ratio percentage is applied to output service tax payable amount or input credit avaible amount?

Also how is the same settled / claim...etc??

Please advice it is very urgent....

Dayal

Dayal (Expert)

23 March 2009 The board has stipulated the procedure for the said enquiry.

1 Value of clearances of exempted goods during 2007-2008 Rs.50,00,000
2 Value of clearances of dutiable goods during 2007-2008 Rs.1,50,00,000
3 Value of exempted services rendered during 2007-2008 Rs.25,00,000
4 Value of taxable services rendered during 2007-2008 Rs.75,00,000
5 Input credit attributable to the inputs consumed in the manufacture and of exempted goods, made during April 2008. This should be calculated with reference to the actual quantity of inputs thus consumed. No formula has been prescribed for this purpose and this has to be quantified on the basis of input / output ratio and the records maintained. Let us assume this to be Rs. 1,00,000 (A)
6 Input credit attributable to the exempted services rendered during April 2008 Rs.25,00,000 (B)
------------------ X Rs.9,00,000 (D)
Rs.1,50,00,000 + Rs.25,00,000 + Rs.75,00,000 =
Rs.2,50,00,000

(C)
Rs.90,000
7 Input services credit attributable to the manufacture of exempted goods and rendering of exempted services, during April 2008. Rs.25,00,000 +
Rs.50,00,000 (E)
------------------ X Rs.5,00,000
Rs.25,00,000 +
Rs.75,00,000 +
Rs.50,00,000 +
Rs.1,50,00,000

(F)
Rs.1,25,,000

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