22 July 2010
What will happen with the cenvat credit if the Company is doing both the trading of goods & the service providing activity & receiving the bills for say auditors fees, Rent etc. Will the Amount of bill be apportioned & hence the cenvat credit will also be distributed & can be availed only against the service providing activity. if yes in which proportion
Trading Activity falls neither in purview of output service nor is it a manufacture of goods.It is also not an exempt service. However there is not explicit rules regarding this , following case law put light on this issue and can be used as rule
17 August 2010
THANKS ABHINAV REALLY. I KNEW ABT THE RULE 6(3) BUT IN THAT IT WAS NOT WRITTEN ABT TRADING ACTIVITY. THANKS 4 GIVING A CASE LAW. THIS WILL SERVE MY PURPOSE
CAclubindia
