Can we take 100% and 20% credit option simultaneously

any body know about this.

It appears from the wordings of CCR (Rule 6(3) that the service provider has to adopt either of the two options, not both.

yes, definitly the assessee can do so

Rule 6(3) of CCR read as under: (3) Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer or the provider of output service, opting not to maintain separate accounts, shall follow either of the following conditions, as applicable to him, namely:- .............. The words "opting not to maintain separate acounts" makes it amply clear that the manufacturer/service provider has to either opt to maintain separate account or opt not to maintain separate account.

Thanks for ur kind support .. pls tell me from where i can get documented proof.

Mr Shyam . I think u have not Mr Shyam , I think you are not getting my point. I mean to say that we have two seprate branch. They are maintaning their seprate branch accounts. In one branch we are maintaining seprate records for taxable & non taxable service. So in that case we can take 100% credit for that branch. in another Branch we are also giving both taxable & non taxable services but we are not maintaing seprate records for particulars that branch . So in thic case can we take 20% credit for this branch also or not.

Sir, In this situation no problem. You can opt one option for one branch and the other option for other branch. For the 2nd branch, you can utilise the cenvat credit to the extent of 20% of your service tax liability.

is there any document evidence so that i can show this to my MD . Thanks

Sir,

In the case of service tax/Central Excise, each factory of the manufacturer and each premises of the service provider are registered and assessed separately.

Each unit is unique. There is no compulsion to adopt uniform policy for all the premises.

Sorry, I am not able to provide any documentary evidence/proof. These are matter of interpretation. If, in future any case law comes to my knowledge, I shall intimate you.

I have add new query and expecting reply from ur side on construction services.

I DONT THINK SO.........U HAVE TO FOLLOW ANY OF THE ONE RULE FOR ONE WHOLE BUSINESS ENTITY. BUT IF U HAVE SEPERATE BRANCHES AND BOTH ARE REGISTERED SEPERATELY WITH ST DEPARTMENT THAN U CAN GO IN FOR BOTH THE RULES.

IF SO DONT GO FOR CENTRALIZED REGISTRATION.

You can use both the options simultaneously i.e. you can avail 100% credit as well as 20% credit as the case may be. For more details, you may visit https://www.taxmanagementindia.com

Jiten, you can only have one option available for your input credit But, for your information, the real benefit lies in Cenvat Credit Rules, 2004 under rule 6(5), where irrespective of the method, you can have 100% input credit utilization on 16 specified services