Trading activity

"A" is a manufacturer, and trader as well, he has Excise manufacturer and dealer registration, maintains seperate record, he uses common input services for the both, how to ascertain which services is used for excise and which one for trading? and what will be duty available for credit corresponding to input services?

Replies (2)

i think its similar to rule 6 of cenvat credit rules.........but since he is maintaing separate books of accounts there must not be an issue............... i tnink you have to apportion input service tax credit on the basis of turnover

Chandni is correct. If your common input servies are separable between dutiable activity and non-dutiable activity with documentary proof, take credit of such input service relatable to dutiable acivity. Else, apportion based on turnover as provided under rule 6 of CCR.

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