I have a little doubt regarding avail of Service Tax Credit rule 6(3)(iii).
Four Types of Manufacturer,
Type-I : Manufacture the Dutiable Goods
Type-II : Manufacture the Exempted Goods
Type-III : Manufacture the Dutiable and Exempted Goods also.
Type-IV : Manufacture the Dutiable Goods and Purchase the Finished Goods with
own Trademark from other manufacturer and Sales it.(Trading activity)
We are ‘Type-IV’ manufacturer of Pharmaceuticals Product.
Can we take common service tax as per rule 6(3)(iii) as per below mention formula?
E : Total value of exempted goods (Total Sale value Trading Goods- Total Purchase value of Trading Goods)
F : Total Sale value of taxable goods + Total value of exempted goods
G : CENVAT credit taken on input services during the month
(E/F) x G : Amount to be reversed every month on provisional basis as per rule 6(3A)(b)(iii)
My doubt that Rule 6(3)(iii) is only applicable to Type-III manufacturer because we are manufacturing the Dutiable Goods only but not manufacturing the Exempted goods.
Service tax rule 6
rutambh (.....) (217 Points)
15 December 2011