Rule 6(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2011 We need your advice in regards to applicability of Rule 6(3) for Reversal of Service tax

The conditions applicable to us are as follows:
Providing taxable service ---Yes
Providing exempted service ---No
Providing export of service ---Yes (Whenever raising bill to Group Company in Foreign)
Manufacturing (Excisable) Sales Nil
Trading (Excisable) Sales-E1 Sales ---Yes- No excise duty is charged by us by us, excise duty is being transferred as indicated on supplier bill.
Input Credit availed ---Yes ( whatever service received)

PUNEET GOYAL

PUNEET GOYAL (Expert)
Follow

12 November 2011 In your case, you are providing taxable service and also exporting the same. You are not doing manufacturing but you are trading in excisable goods.

As per rule 2 (e) of CENVAT credit rules, 2004 exempted goods, inter alia ,includes trading.

As per rule 6(3) of CENVAT credit rules, 2004, inter alia,service provider shall follow any one of the following:

(i) pay an amount equal to five per cent. of value of the exempted goods and exempted services; or
(ii) pay an amount as determined under sub-rule (3A); or
(iii) maintain separate accounts ........

If in your case you opt to pay 5 % of value of exempted goods or services then it shall be calculated of value of trading of goods.

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2011 is export of services matters under your opinion?..Export of service is also exempt for service tax i thing..pls guide

Upgrade to CAclubindia Pro. Subscribe Now!

PUNEET GOYAL

PUNEET GOYAL (Expert)
Follow

14 November 2011 ur question is not understandable pls ask again.