ca
40 Points
Joined January 2010
| Originally posted by : Nirav Worah |
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Dear members,
How to avail cenvat credit if someone provides both taxable and exempt service?
Regards,
Nirav Worah |
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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