Hi
Can any one of you help me the query regarding inclusion of trading activity under exempted services. Under the new definition the value of trading activity for the purpose of Rule 6(3)a shall be difference between sale value and cost of goods sold. For Example.. Total Turnover- 100 crs. Trading Turnover- 60 crs. Cost of goods sold on trading turnover-50 crs. Total cenvat credit-1 cr. What wil be the cenvat to be reveresed?
Rs.1 cr. x Rs.40/Rs.50. Rs.40 is the value of taxable services. Rs.50 = Rs.40 + (Rs.60-Rs.50). Actually preceding years figures can be adopted for the monthly apportionment. Then do adjument on the basis of current year's figure after the year end.
Thanks for your answer sir. I still have a doubt on this. In the formula prescribed under rule, the numerator should be the exempted turnover. Whereas in your answer, you have taken taxable turnover as the numerator. Kindly clarify.
I was working out the admissible credit and not the reversible credit.
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