24 February 2009
New Rule 6(3) of Cenvat Credit Rules 2004, gives two option for taking the cenvat credit i.e. (i) either reverse the credit attributable to the inputs services used for providing the exempted service. (ii) pay8% amount of the value of the exempted service.
Please advice what stand for value of exempted service whether the value of trading activities shall also become part of value of exempted service or not likewise other income like income received from sale of old newspapers/garbage shall become the part of value of exempted service or not for working out the percentage of ratio between value of taxable and exempted service.
27 February 2009
Yes trading is an exempt category when considering gross Income
So while considering attributable service tax to the taxable services, this will needs to be considered However there are 16 specified services for which you need to not apportion, rest you will need to consider all of the source of income from sale for attributable credit
CAclubindia
