Dear All ,
Please refer the below debit note calculation -
Insurance premium - 21760
Service tax @ 12.36 % -2689
Total- 24449
Cenvat credit ( 50% of ST i.e.2689/2 ) - 1345
Amt chrged in Debit note ( 21760+1345) - 23105
Servie tax @ 12.36%- 2856
Total - 25961
Being a NBFC Company, it will be entitled to 50% Cenvat Credit on the input services under Rule 6(3B) of the Cenvat Rules 2004. Therefore it can pass on the benefit of 50 % of the service tax charged by the insurer and the remaining 50% becomes part of the amount billed to us.
Kindly let me know if the above calculations are correct.
CAclubindia
