Selling time slot for advertisement on internet

[satbir singhwahi]

Selling time slot for advertisement on internet, if cenvat taken fully for other taxable service . Then 6 percent has to be paid for Selling time slot for advertisement on internet. Is this correct treatment.

[Guest]

This is one of the option. Alternatively, you can maintain separate books of account showing the value of taxable as well non taxable service and can reverse the credit attributable to non taxable services. Another option is to reverse as per Formula provided under Rule 6(3A) of CCR by complying with the prescribed procedure. 

[Madhukar N Hiregange]

Since the credits may not be very high the 6 percent reversal option may not be economically viable/. The proportionate reversal method under 6(3) is preferable if possible.

AI Summary

Exploring Service Tax Treatment for Internet Ad Slots: Rule 6(3A) vs. Rule 6(3) for CENVAT Credit Reversal. A discussion on the appropriate treatment of service tax for selling advertisement time slots on the internet. The initial query asks if paying 6 percent is correct when full CENVAT credit is taken for other taxable services. One response suggests maintaining separate accounts for taxable and non-taxable services and reversing credits for non-taxable services, or using a formula under Rule 6(3A) of CCR. Another response advises that the 6 percent reversal may not be cost-effective if credits are low, recommending the proportionate reversal method under Rule 6(3) instead.