Service tax credit on common services

hi

if production unit having 2 type of prduction like exempted and taxable following options are available.

1) praportionatly reverse total cenvat in ratio of taxable and exempt

2) prepare saperate books of accounts and take full setoff on taxable services and furgo setoff on exempted output services

3) pay 5% in case of Mfg. industry and 6% in case of Service provider. and scientifically apportion common cost setoff on taxable services and exempted services.

segregate on ratio basis.

see the rule 6(3) of cnevat credit rule - 2004.

Procedure laid down under Rule 6(3) of Cenvat Credit Rules, 2004 shall be followed.

- Ruben Balooni

yes,the procdure of Rule 6(3) of Cenvat Credit Rules, 2004 is applies.