Turnover tratment - cenvat credit

[RAJESHMANGAL AGRAWAL]

An output service provider provides some output service as well as involved in trading of goods. For availment of Cenvat credit of Input service,whether Turnover of Trading of goods is treated as Exempted Service And in the case of Non maintenance of Books for availing the Input Service Credit (other than the 16 specified service) 6% of The Turnover of traded goods is required to be paid. Pl. explain and if possible pl. provide the relevant case laws. Thanks & regards

AI Summary

Clarification on Cenvat Credit: Trading Goods Not an Exempted Service, No 6% Payment Required on Trading Turnover. An output service provider involved in both service provision and trading of goods inquired about the treatment of Cenvat credit for input services. The query focused on whether the turnover from trading goods is considered an exempted service and the implications of not maintaining separate books for input service credit. One response clarified that trading goods is not treated as an exempted service under Service Tax Law, thus not requiring a 6% payment on trading turnover. Another response suggested reversing the Cenvat credit on trading goods and finding an acceptable formula for the department.