Dear Sir ,
Please clear , a company manufactureing exempted goods as well as dutiable goods , some inputs are commenlly used and some are exclusively used in exempted goods ,my question is whether we requier to pay 5% duty on the sale value of the exempted good excluding all taxes or reverse the credit of inputs exclusively used in exempted goods or both .
Thanks
Company Must Choose One Option for Input Credits on Exempted Goods Under Rule 6 of Cenvat Credit Rules 2004. A company manufacturing both exempted and dutiable goods inquired about handling input credits for exempted goods. Experts advised referring to Rule 6 of the Cenvat Credit Rules, 2004, which prohibits credit on inputs exclusively used for exempted goods. For common inputs, the company can choose from three options: maintaining separate accounts, paying 5% of the exempted goods' value, or reversing credit proportionately. Once an option is chosen, it cannot be changed within the financial year. The consensus was that the company must select one option, not both. (AI Summary)
TaxTMI 
TaxTMI 
