TaxTMI 
TaxTMI 
Can you give me cenvat credit rule 6 formula with example?
Cenvat credit rule
02 May 2009 
1 Reply 
1324 Views Asked by
Guest 
Cenvat credit apportionment: formula complex for combined manufacturing and service operations, simpler for single-activity taxpayers.
The apportionment formula in Rule 6 for Cenvat credit is complex when applied to taxpayers performing both manufacturing and service activities simultaneously, because it must allocate input credit between those mixed activities; however, the formula becomes materially simpler and easier to apply where the taxpayer undertakes only a single activity, either manufacturing or service. (AI Summary)
The apportionment formula in Rule 6 for Cenvat credit is complex when applied to taxpayers performing both manufacturing and service activities simultaneously, because it must allocate input credit between those mixed activities; however, the formula becomes materially simpler and easier to apply where the taxpayer undertakes only a single activity, either manufacturing or service. (AI Summary)