Rule 6(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2011 We need your advice in regards to applicability of Rule 6(3) for Reversal of Service tax

The conditions applicable to us are as follows:
Providing taxable service ---Yes
Providing exempted service ---No
Providing export of service ---Yes (Whenever raising bill to Group Company in Foreign)
Manufacturing (Excisable) Sales Nil
Trading (Excisable) Sales-E1 Sales ---Yes- No excise duty is charged by us by us, excise duty is being transferred as indicated on supplier bill.
Input Credit availed ---Yes ( whatever service received)

PUNEET GOYAL

PUNEET GOYAL (Expert)
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12 November 2011 In your case, you are providing taxable service and also exporting the same. You are not doing manufacturing but you are trading in excisable goods.

As per rule 2 (e) of CENVAT credit rules, 2004 exempted goods, inter alia ,includes trading.

As per rule 6(3) of CENVAT credit rules, 2004, inter alia,service provider shall follow any one of the following:

(i) pay an amount equal to five per cent. of value of the exempted goods and exempted services; or
(ii) pay an amount as determined under sub-rule (3A); or
(iii) maintain separate accounts ........

If in your case you opt to pay 5 % of value of exempted goods or services then it shall be calculated of value of trading of goods.

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2011 is export of services matters under your opinion?..Export of service is also exempt for service tax i thing..pls guide

PUNEET GOYAL

PUNEET GOYAL (Expert)
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14 November 2011 ur question is not understandable pls ask again.

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