input credit of CENVAT

[sridhar oruganti]

Dear sir,

 

Our core business in trading and servicing of medical equipments. We received input credit by way of couriers charges, clearing charges paid for import equipment , AMC & labour charges involved in trading the medical equipments.

Our main issue is that we are not segregating the cost on the basis of tragding and service separately.  can we take the service tax paid on account of above mentioned as input credit even if we are unable to distinguish between the trading / service.

 

thanks and regards

sridhar oruganti

AI Summary

Input credit restriction: trading treated as exempted service limits CENVAT credit; option to pay flat share or reverse proportionate credit
Trading is treated as exempted service, limiting CENVAT/input credit to a proportionate amount under the CENVAT Credit Rules; valuation for apportionment uses the actual margin or a prescribed minimum margin, whichever is higher. If accounts are not segregated between trading and taxable services, the taxpayer must either make the prescribed fixed-share payment or compute and reverse proportionate credit under the statutory apportionment mechanism.