Cenvat credit-reg

[N Balachandran]

Sir,

 

When we provide both exempted services and taxable services and not maining the seperate records, what is the basis for calculation for  eligible Cenvat credit under the following circumstances:

1. The Service tax paid on input services when the corresponding output services are taxable

2. The Service tax paid on input services when the corresponding out put services are not taxable .

3. The service tax paid on  common input services when they used for both services exempted services and taxable services

My question are:

 

1. The Service tax paid on input services when the corresponding out services are not taxable,  Is it possible to take cenvat credit and adjust against tax payable on output services which are not related to this input  services?

2. Can we take the cenvat credit  when the Service tax paid on common input services and adjust against the  tax payable on output services? Is there any formula for calculation of Cenvat credit?

3. Is there any restriction for availing Cenvat credit and is there any specific services where are not eligible for Cenvat credit?.

4. The Service tax paid on input services  and the same has been adjusted against the corresponding out services which are taxable,  what will happend to the service tax paid on common input services.

 

Pl clarify

 

Regards

 

N.Balachandran 

.

AI Summary

Understanding Cenvat Credit Calculation for Mixed Services: Rule 6(3) Explained for Common Inputs and Non-Taxable Outputs (3) A participant inquired about the calculation of eligible Cenvat credit when providing both exempted and taxable services without maintaining separate records. The key questions involved taking Cenvat credit on input services related to non-taxable output services, using common input services, and restrictions on availing Cenvat credit. A respondent referred to Rule 6(3) of the Cenvat Credit Rules, 2004, which outlines provisions for calculating Cenvat credit proportionately and mandates a payment of 5% (now 6%) of exempted services if separate records are not maintained. The inquirer thanked the respondent for the clarification.