We are manufacturer as well as service provider and we are doing both the business from same premise. Accordingly, we are registered with Excise authority as manufacturer and Service tax department as Provider of output service. We have single books of accounts for both of business.
Please advice whether we have to maintain separate CENVAT accounts for manufacturer and Service provider or single CENVAT account for both?
Business Entity Can Use Common CENVAT Account for Manufacturing and Services if No Exempt Goods; Consider Separate Accounts for Clarity. A business entity engaged in both manufacturing and service provision from the same premises inquired whether they should maintain separate CENVAT accounts for each activity or a single account. Responses indicated that if no exempted goods or services are involved, a common CENVAT account is permissible. However, one respondent advised maintaining separate accounts due to potential challenges in filing returns and suggested informing the department in writing about the credit utilization method. The discussion highlighted the importance of compliance with CENVAT Credit Rules, 2004, to avoid complications. (AI Summary)
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