23 August 2008
Dear Sir/ madam, Would u please tell me..
Our client has Maruthi Authorised service station.Whether he has to utilise 100 % cenvat credit on service tax payble or 20 % cenvat credit on ST payable ?
Are there any notification or case studies in this regard ?
24 August 2008
All inputs and input services can be claimed as CENVAT. The restriction is when an assessee is providing taxable and non-taxable service. In that case 8% of the value of non taxable service has to be reversed. The 80:20 rule is not in existant wef 1.4.2008. Therefore prima facie on facts above, there is no CENVAT restriction.
CAclubindia
