Sir,
A Limited company has registered its head office with Service tax Department as both Service provider and Input Service Credit distributor. The Head office is also involved in trading business which is exempted service. As service provider, the company has maintained separate record as per Rule 6(2) of Cenvat Credit Rules, 2004 for receipt, inventory & consumption of input services which are used exclusively for providing taxable services and taking total cenvat credit of such exclusive input services used for providing taxable services only and utilizing the same for their service tax liability.
As Input Service credit distributor, the company has opted for proportionate credit mechanism under Rule 6(3) and distributing the credits to its manufacturing units.
The query is : Can the Head office of the company simultaneously opt for Options under Rule 6(2) and Rule6(3) as service provider and ISD respectively... Raghu
CAclubindia
