Rule 6, Cenvat Credit Rules
CA. ROHIT GUPTA (Service) (133 Points)
02 May 2011CA. ROHIT GUPTA (Service) (133 Points)
02 May 2011
P.Bashista
(Advocate)
(367 Points)
Replied 04 May 2011
If you are providing services both taxable and exempted then either you maintain a seperate inventory (as per Rule 6(2)} or pay 5% duty on the exempted services (as per Rule 6(3)} and take credit on the input of both the services.
makarand
(a)
(26 Points)
Replied 09 May 2011
M/s.A company sells excisable goods to M/s. B - a "SEZ" company. M/s. B is requesting for exemption from payment of Excise duty and VAT.
Kindly advise a) which specific form/ document , if any, M/s.A has to collect from M/s.B in order to grant exemption from Excise Duty and VAT.
b) OR M/s. A collect ED & VAT from M/s. B. and let M/s B claim refund from the concerned authorities. ??
c) If exemption is granted to M/s B, and subsequently the excise authorities decline the exemption, M/s. A can collect ED with penalty from M/s. B, under any specific Rule.
Ajay Raghatate
(Sr Executive (Excise & Accounts))
(736 Points)
Replied 21 June 2011
Rule 6 Cenvat Credit Rules 2001 effective from 01/04/2011
(iii) the amount attributable to input services used in or in relation to manufacture of exempted goods “and their clearance up to the place of removal” or provision of exempted services (provisional) = (E/F) multiplied by G, where E denotes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the preceding financial year, F denotes total value of taxable and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the preceding financial year, and G denotes total CENVAT credit taken on input services during the month;
1. Is this rule applicable for Excise Registered depot ?, from this depot issue excise Invoices.
Our company is mfg unit, and doing trading activity from a Excise registered depot, Company import some raw materials and consumed in plant as well as sale to other parties & high seas basis. in that case What amount of Input service tax credit eligible to apportion mean only which service tax credit which is commonly used for trading activity and for mfg unit. or all service tax credit. plz clarify.
thanks
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 21 June 2011
dealer registration holders are not eligible for input credit of excise or service tax, the input credit facility is available to only exisable goods manufacturer/ taxable service provider.