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

[Asked by 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

Cenvat credit apportionment: export-service credit may be used for domestic taxable services under Rule 5 conditions.
For a supplier providing both export and domestic taxable services without any exempt services, Rule 5 of the Cenvat Credit Rules prevails over Rule 6, obviating the need for separate books of account and permitting utilisation of credit attributable to export services for other taxable domestic services subject to Rule 5 conditions.