Cenvat Credit

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Dear members,

How to avail cenvat credit if someone provides both taxable and exempt service?

Regards,

Nirav Worah

Replies (1)
Originally posted by : Nirav Worah

Dear members,

How to avail cenvat credit if someone provides both taxable and exempt service?

Regards,

Nirav Worah

Option 1: To avail 100% cenvat credit on input service either maintain seperate books of accounts for taxable and exempted service (which is very difficult )

OR

Option 2(a): Avail 100% CENVAT credit on input service and pay 6% of the value of exempted service or

Option 2(b): Avail proportionate CENVAT credit

Also at the same time you can avail 100% CENVAT credit of 16 specified services mentioned in Rule 6(5) of CENVAT credit Rules, 2004 without applying the above provision

Please Refer Rule 6(3) of CENVAT Credit Rules, 2004 for further clarification


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