Rule 6(3a) of the cenvat credit rules

This query is : Resolved

nikhil goenka (Querist)
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01 May 2014 we are the provider of taxable service(Erection , commission & installation/ Consulting Engineer/ Business Support services) and also engaged in trading activities and doesn't maintain separate books of accounts.
In order to claim cenvat on input services, rule 6(3) and rule(3a) are to be followed. some of the input services are exclusively used for providing taxable services/trading activites(exempted services) and some of the input services are common.
My doubt is:
1. can we claim the full cenvat credit on the input services which are exclusively used for providing taxable service.
2.how to claim cenvat credit on input services where we cannot bifurcate between taxable service & exempted service.

CA Sachin D Jain

CA Sachin D Jain (Expert)
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01 May 2014 The answers to your queries are as follows:

1. Yes, you can do so. But the same rule is required to be followed for CENVAT used for exempt services also.

2. You need to follow the method prescribed under the rules. Either by paying a specific percentage on exempt services or by doing a pro-rata reversal of cenvat credit in proportion of exempt services to total services provided.