Cenvat for Service provider and Manufacturer

[Arti Gupta]

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?

AI Summary

CENVAT account separation: maintain separate records when inputs serve both taxable and exempt goods or services.
Cenvat Credit Rules require that when inputs or input services are used in relation to both dutiable and exempt goods or services, separate accounts must be maintained for inputs used in or in relation to manufacture of exempted goods, manufacture of dutiable final products excluding exempted goods, provision of exempted services, and provision of output services excluding exempted services. If no exempted goods are cleared and no exempted services are provided, a common CENVAT credit account may be maintained. Taxpayers should ensure proper reporting of credit availment and utilisation and may notify the department of their method.