Applicability of Rule 5 and 6 of CENVAT CREDIT RULES - export and domestic services

[Guest]

if service provider who is providing both export and domestic services in and but not providing any exempted services in India, then whether he be restricted to Rule 5 of Cenvat Credit Rule, 2004 (so that he can escape the provision of maintaining separate books of account), or Rule 6 will apply to him.

[Ravi Chopra]

In your case provisions of Rule 5 would prevail over the provisions of Rule 6. He can escape from maintaining separate books of accounts and utilize the credit of belongs to export of services towards other taxable service subject to the contitions of Rule 5

AI Summary

Service provider can apply Rule 5 CENVAT Credit Rules, 2004 for export services, avoiding separate accounts. A query was raised regarding the applicability of Rule 5 and Rule 6 of the CENVAT Credit Rules, 2004, for a service provider offering both export and domestic services without any exempted services in India. The question was whether the provider could avoid maintaining separate books of account by applying Rule 5 instead of Rule 6. The response clarified that Rule 5 would apply, allowing the service provider to utilize the credit related to export services for other taxable services without maintaining separate accounts, subject to the conditions of Rule 5.