Max. % of service tax input credit utilisation

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Prakash (Querist)

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)

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)

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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