CAN WE TAKE THE CENVAT CREDIT OF SERVICE TAX PAID ON INPUT SERVICE WHICH ARE USED BOTH FOR EXPORTING SOFTWARE AND IN DOMESTIC.?
CA SANTOSH SHETTY (SERVICE ACCOUNTS) (48 Points)
26 April 2011CAN WE TAKE THE CENVAT CREDIT OF SERVICE TAX PAID ON INPUT SERVICE WHICH ARE USED BOTH FOR EXPORTING SOFTWARE AND IN DOMESTIC.?
CA. Animesh Kumar Jain
(ACA DISA (ICAI) B.Com)
(226 Points)
Replied 26 April 2011
ya, i think that there is a 100% exemption for exporting softwares to SEZ.........
CA. Shushil Kumar
(Partner)
(235 Points)
Replied 26 April 2011
No. In case you are maintaining books of A/c and it is possible to segrgate the input service for exempted as well as taxable goods then utilise only for taxable services.
In case you are not maintaining books of A/c or not possible to segregate, then you have 2 options:
One - the provider of output service can avail common CENVAT credit and pay service tax equivalent to 8% of the value of exempted services.
The other option is that the provider of output service can avail common CENVAT credit and pay an amount equivalent to CENVAT credit attributable to input goods and services consume in relation to the provision of exempted services.
This is as per CENVAT CREDIT RULES 2004
CA SANTOSH SHETTY
(SERVICE ACCOUNTS)
(48 Points)
Replied 26 April 2011
thx sushil, but above provision are also applicable to exports service
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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