As per CENVAT Credit rules 2004 amendment in 2011 trading activity grouped as deemed non-taxable service so tax payer can enjoy the cenvat credit on that trading activity on two option when the separate books of accounts not maintained
1. 6% on deemed services
2. Pay an amount equivalent to the CENVAT credit attributable to the inputs and input services used in or relation provision of exempted services as provided in Rule 6(3A) of CCR.
Value in case of trading ascertain by sales minus cost of goods sold or 10% of cost of goods sold which ever is more it's deemed service income from trading activity in that whether sales should be taken as whole or in respect of sales related to service portion only taken i.e sales provided not relating to service work also want to taken for calculation
please clarify with suitable case law if any, or provision clearly
CAclubindia
