In respect of Rule 6(3) of cenvat credit rules 2004, proportionate credit would be allowed in case where the assessee doesnt maitain seperate set of books for taxable and exempted services. And assessee would be then eligible to claim cenvat credit on only those input/ input services which actully been utilised for providing output service or removal of finished goods.
Exempted Services is defined under cenvat credit rules 2004 as follows :
2(e) "exempted services" means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which no service tax is leviable under section 66 of the Finance Act;
Now my question is whether exempted service income also include Income earned by way of interest on investment, dividend also..
18 February 2011
No, it is not a service at all. No need to treat interest on investment and dividend as exempted service for the purpose of Rule 6(3).
19 February 2011
Sir, would u please help me out what is the definition of service for the purpose of service tax. Further, service tax law doesnt mention anywhere abt meaning of service neither it mentions reference to any act frm where we should take the meaning of service for the purpose of service tax. General clauses act which is residuary definition act, also doesnt have meaning of service. However, consument protection act 1986 does have the definition of service. So can we use the same for the purpose of service tax as well...!!!
19 February 2011
There are CESTAT decisions that Rule 6 applies only when the activity amounts to service. Although this has been rendered in the context of trading of goods, same has application under given facts.I am searching for the citation.
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