availment of credit on 20% or 100%

[Asked by Guest]

Hi.. My query is relating to service tax. As per the notification , now we cant claim input credit , if we claiming abatement. But if we provind service in which abatement claimed and at the same time antoher one in whcih we dont claim any abatement So what will be the treatment here , wil we claim 100% credit or 20% or nil. Nil i think should not be applicable as if we provide exemp service den also we allowed to take benefit so question is between 20% and 100%

AI Summary

Cenvat credit entitlement: segregable input services allow full credit; unsegregable inputs require proportionate credit.
Availability of Cenvat credit on input services turns on whether inputs can be separately attributed to services for which abatement is not claimed; if separable, full credit may be availed for those inputs. If segregation is not possible, credit must be apportioned between abated and non abated services, and may be disallowed where apportionment cannot reasonably be made. The 20 percent concept pertains to exempt services and is not the standard for abated services; claim and utilisation must follow the applicable Cenvat procedural apportionment rules.