Amended provision of Rule 6 regarding Service tax input

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Amit Barve (Querist)
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14 November 2009 What is the amended provision of rule 6 relating to service tax input credit availment pertaining to exempted and non-exempted services where no separate books are maintained ?

ANIL JANGID

ANIL JANGID (Expert)
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14 November 2009 Rule 6(3) provides an option for a provider of taxable as well as exempt services, using common inputs or inputservices, but opting not to maintain separate accounts to pay an amount of 8 per cent of the value of exempted service.This provision was made when the rate of tax on taxable services was 12 per cent. Since the service tax rate has beenreduced to 10 per cent, the said amount payable on the exempted services is being reduced from 8 per cent to 6 per centof the value of exempted service. This provision would come into force immediately (Refer notification No16/2009-CE(NT), dated 07.07.2009)â€.