Reversal amount under rule 6

[Laxmaiah Vanamamula]

Sir,

Please clarify now Reversal amount under rule 6 of CCR Rules rate is now 6% for 7% as on date 01.06.2015.

Thanking you

V.Laxmaiah

[bhart b sharma]

Rule 6(3) provides for reversal @6% in case of goods, viz., inputs and 7% in case of services (input services utilized for providing output service or used in the manufacturing activity).

bharat b sharma

9953801552

AI Summary

Reversal under rule six requires different treatment for goods and services, lower for inputs and higher for input services. Rule Six distinguishes reversal treatment between inputs (goods) and input services: a lower reversal rate applies to physical inputs, while a higher reversal rate applies to input services used in the provision of output services or in manufacturing; proper classification and application of these rates determine the reversal amount under the rule.