Reg maintenance of separate set of books

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Amit (Querist)
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11 November 2013 Hi
As per service tax, it is mandetory for assessee to maintain separate set of accounts if he is providing exempted services. (ie. if he does not want to pay 6%/8% of exempted amount). If assessee maintains separate set of books but did not provide the details or submit the letter to that effect to service tax department, can service tax dept assume that assessee has not maintained separate set of books? or is it just a technical issue which can be sorted out. Also are there any case laws regarding this issue?

Pratik Bhansali

Pratik Bhansali (Expert)
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11 November 2013 You may also Pay an ‘amount’ equal to proportionate Cenvat credit attributable to exempted final product/ exempted output services, as provided in rule 6(3A) – Rule 6(3)(ii) of Cenvat Credit Rules.
Whether asesse maintains seperates books or not has to be declared in the service tax returns which is one of the questions in the returns. Further is assesse opts for Rule 6(3) he also is required to intimate the department by way of letter about the option opted and option once selected cannot be changed in the middle of a financial year.

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