cenvat credit on rent paid on premises

[Asked by Guest]

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.

AI Summary

Cenvat credit apportionment: elect separate accounts, pay prescribed levy, or reverse proportionate credit for mixed-use inputs.
Cenvat credit for rented premises used for both exempted and taxable services must be managed by one of three alternatives: maintain separate accounts limiting credit to taxable-use inputs; pay the prescribed levy on exempted-service value; or reverse credit proportionately using the statutory apportionment formula. The assessee must choose the option in writing for the financial year; where input-stage segregation is impractical, pay the levy or apply proportionate reversal, the latter often being more economical.