Dear sir/mam,
we are dealing in trading activities and also provider of more than one taxable services out of one is like tranport of goods by road on which we claim abatment while paying service tax. Presently we are paying rent with service tax of premise which are used both in trading activities and providing output services. Please guide me how to take credit of service tax paying on rent and in what proportion. if there is also any rule, notification,or any circular then also let me know about it. Please reply as earliest possible.
Trading Service Provider Seeks CENVAT Credit on Rent; Options Under Rule 6 Discussed for Cost-Effective Compliance A trading and service provider inquires about claiming CENVAT credit on rent paid for premises used for both trading and taxable services. Two responses suggest options under Rule 6 of the CENVAT Credit Rules, 2004. The first advises maintaining separate accounts for exempted and taxable services or reversing credit for exempted services. The second response emphasizes the difficulty of maintaining separate accounts and recommends either paying 6% on exempted services or reversing proportionate credit monthly, with the latter being potentially more cost-effective. The chosen option must be documented and cannot be changed within the fiscal year. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
