Cenvat on inputs for export-local services

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Dear Friends

We are service provider having export services which are exempt and also local services which are taxable.

is there any rule for bifurcation of input services for claiming cenvat credit if the accounts are not maintained separately?

Can we take cenvat credit on all input services against taxable local services

  
Replies (4)
Export of Services Rules 2005, provides for a rebate that can be claimed from the Service Tax department. The procedure has been laid out in Notification No. 12/2005-ST.
As per service tax rule 2005, if service provider provides both exempted as well as taxable services and does not maintain separate books of account for both kind of services then only 20% of service tax liabilty( arised on account of providing taxable sevices) can be set off against cenvat credit available,ie. 80% of service tax liability shall have to be paid through TR6 Challan.
yes, if the service provider provides both taxable and exempted services, the service provider has to maintain spearate accounts for the receipt , consumption an dinventory of input service meant for use in providing taxable service and the quantity of input meant for use int he manufacture of exempted services and take cenvat credit only on the quantity of input or input service which is intended for use in providing output service on which service tax is payable, other wise he is eligible only to the extent of an amount not exceeding 20% of the amount of service tax payable on taxable output service.
we are the exporter of Iron ore fines and using the Excisable inputs/services but our final products is exempted from Excise duty can v take the refund of input credit or adjust against the GTA if so any case laws there pl provide


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