Dear Sir,
I want your valuable advise in a service tax matter of Hotel-
1. The company availed CENVAT credit on Capital Goods purchased in April, 2008; However date of Service Tax Registration is 05.12.08.
Is it Allowed?
2. The company is not availing benifit of Notification No. 01/2006 (Abtment of 40% of gross amount in convention & mandapkeepr services) with a intention to avail heavy CENVAT credit on capital goods. However company is segregating the bill amount of Convention centre in two parts first for service and second for food and pay ST on first, VAT on second on the basis of non charging of ST on sale of goods. Notification 12/2003.
Is it Ok.
3. The Hotel is also selling rooms. A question has been raised by the department that you are also providing exepmt services as you are selling rooms and it is also exepmted service. So you have to pay 8% of the value of Exempted service under rule 6 of cenvat credit rules as you are not maintaining seperate books of accounts.
As per my openion rule 6 is applicable on input service only and not on capital goods, therefore credit of capital goods will still not be effected.
It is not practically to pay 8% of room rent and seperate books also not possible, is it ok if we dont avail CENVAT credit on input service and avail Credit on Capital Goods.
Please advise, i will be greatful to you.
CAclubindia
