Dear Friends
Mr. A is a C.A providing both taxable & exempt services.Is there any limit for taking cenvat credit on services like telephone, printing & stationery etc. Please guide.
2 Replies
Amir
(Learner)
(4016 Points)
Replied 09 February 2010
Dear Ganpath,
Yes either separate records is to be kept, which is obviously difficult, or some notional dissallowances/reversal are there in respect of cenvat credit like service provider can utilize only an amount not exceeding 20% of the service tax payable on taxable services..Rule 6
Further there is also an option to take credit on estimation basis & later on adjusting it.
Further, there are some services in respect of which 100% credit is allowed even if used for both taxable & exempted services - like Architecture, Interior Decorator..
Plz go through Rule 6 of CCR, 2004 for details......
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 09 February 2010
The 20% utilisation scheme is no longer in vogue. Only proprotionate basis for the unspecified common services. However capital goods cenvat can be availed in full as long as it is not exclusively used for provding non taxable services.
Pinting & stationery normally does not incurr ST. Pl check whether it is VAT. VAT is not a\djustable at all.
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