W.E.F. 1-4-08, the Govt has devised a formula for claiming cenvat credit in case of assessees providing taxable and non taxable servcies and also not maintaining separate records for input consumption of goods and servcies as per second option under rule 6(3)
Please inform whether the adoption of following basis is acceptable.
For the year ended on 31-3-2008 the income of the assessee consisted as under
Total value of Exempted Services provided Rs.120 Lacs
Total value of Taxable Services provideble Rs.20 Lacs
Ratio 120/20
Whether he should apply the above ratio to servcie tax paid on all im[put servcies received during the current financial year and work out the amount which can be claimed as dedcution from service tax payable?
Please send your replies.
regards,
s.s.kelkar
CAclubindia
