rule 6, sub-rule (3) clause (ii)

[mukesh pareek]

Dear Experts,

A Manufacturer of dutiable and exempted products maintaining separate accounts for input material and taking Cenvat credit accordingly but he can''t maintain separate account for input service.

Manufacturer want's to follow rule 6, sub-rule (3) clause (ii) so can anyone explain this simply ( Do not copy as mention in manual because i can't understand)

Someone said me that if your last year ration is 85 : 15 ( 85 exempted sale and 15 Dutiable sale ) then you can take partial 15% credit of total input service for whole next year.

please advise

AI Summary

Manufacturer Seeks Clarification on Rule 6(3)(ii) of Cenvat Credit Rules for Mixed Product Accounting and Credit Claims A manufacturer dealing with both dutiable and exempted products seeks clarification on applying Rule 6, sub-rule (3), clause (ii) of the Cenvat Credit Rules, 2004, as they cannot maintain separate accounts for input services. They inquire about using a sales ratio from the previous year (85% exempted, 15% dutiable) to claim partial credit. Experts advise that the formula is complex and requires a Chartered Accountant's certificate, and warn against using the proposed ratio as it lacks legal sanction. The manufacturer seeks a simple formula and asks about its application timing.