Rule 6(3a) -urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 Dear all,

I just had the following query with reference to Rule 6(3a) Workings;

First of all i will explain the rules;

Cenvat Credit can be availed only for the Taxable services, for which we have to adopt the following formulae;

Eg:

We have an Outsourcing fees received from Insurance company amounting to Rs.1,00,000

Brokerage received from mutual Fund: Rs.1,00,000

Dividend Income : Rs.50,000

Interest on deposits: Rs. 50,000

Total Credit available : Rs.5,00,000

Question 1: Whether Brokerage received form Mutual fund is exempted or we have to pay service tax on it?

Question 2: Whether Dividen income and Interest on deposits can be completely ignored? I.e while calculating the credit to be utilised a per Rule 6(3a) , Whether Dividend income should also form part of Excluded Income or the amount can be completely ignored?

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 Hi,

Service tax has to be paid on Brokerage Income.

Since Dividend and Interest Income are excluded from Servcie tax perview , 100 % credit can be utilised.

I want the view of others also in this.

Querist : Anonymous

Querist : Anonymous (Querist)