Max. % of service tax input credit utilisation

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Prakash (Querist)
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10 December 2010

A private limited compnay engaged in providing softwre services. It has both domestic and export services. Service tax is leviable for deomestic services rendered . What is the maximum % of input credit can be availed in the case , if seperate set of books are not maintained for domestic services and export services. Please let me know.

Thanks for your help.

Best Regards

CA Kalpesh Gokani

CA Kalpesh Gokani (Expert)
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10 December 2010 Though service tax is not required to be charged on export of services, but service provider can avail CENVAT credit for inputs, capital goods & input services used in providing such exported services also. so all input credit can be availed for domestic as well as export of service.

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Prakash

Prakash (Querist)
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10 December 2010 Dear Mr. Kalpesh,

Thank you very much for your invaluable inforamtion.

I read some where that if no seperate books are maintained for both export and domestic services, input credit availment is limited to only 30% of the total input credit available and input credit rules 3(4)etc will apply. Please let me know whether my recollection is correct or not . Best Regards

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