20% of input service tax

[Guest]

Dear Sir,

I wish to clear one of my doubt.ie In which stage we have to claim input serice tax @20%. and is 20%  is calculating based on Total oputput service tax or Total input servic Tax

[YAGAY andSUN]

I am afraid that you are reffering a very old provision of law pertaining to service tax.  Now, if you are manufacting or providing taxable or exempted service by using common input service then you would have to reverse the Equivalent CENVAT credit by giving the prior intimation to the concerned superintendent of Central Excise, Or as per formula mentioned in Rule 6 you would have to reverse CENVAT credit or pay an amount equivalent to 6% of the value of such services.

 

AI Summary

Clarification on CENVAT credit: Reverse credit for mixed services or pay 6% of service value as per Rule 6. A query was raised about claiming input service tax at 20% and whether it should be calculated based on total output or input service tax. The response clarified that the provision referred to is outdated. Currently, if manufacturing or providing both taxable and exempted services using common input services, one must reverse the equivalent CENVAT credit with prior notice to the Central Excise superintendent or follow Rule 6 to reverse CENVAT credit or pay an amount equivalent to 6% of the value of such services.