if in a company which is into both businesses i.e Trading(selling of Equipments) & Services(AMC's) must the input ST credit on general exps like telephone, electricity,air travel, Corier Charges etc must be bifurcated according to proportion of turnover relating to income from SERVICES or can the whole amt of ST can be taken as credit??
15 December 2009
Under rules 6 (3) there is no specific bar on credits used for trading activity. However it maybe wise to estimate based oncosting porinciples, the duty credit allocable for trading and avail short credit to that extent. It is a fact that majority of input service wouldbe used for provding services and proportion of services for trading wouldbe less.
CAclubindia
