Separate books of accounts

This query is : Resolved

CA Pramod Jain (Querist)
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25 August 2015 Dear Sir,

We are mainly into wholesale trading of iron and steel, and we also provide business auxiliary services.

we take service tax cenvat credit (directly linked to service provided) and pay balance service tax liability.

Now (have received scruitney letter) dept. is asking us to have separate books of accounts and are threatening to disallow cenvat credit taken.

Plz advice in the matter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 August 2015 Keeping separate books is a condition for availing with cenvat credit when taxable service and exempted services are provided.
You can argue that you are not providing any exempted service. But keep separate books of account for taxable service provided.