Sir,
We have business of Real Estate ( sale purchase of plots/shops etc and constructin house & sale etc) and have commercial units from which We receive Rental / Maint.
My Query is while calculating ratio for reversal of CENVAT U/R 6 for exempted service , should we require to add diffrence of value of sale purchase of above said plots/shops & house as exempted service ?
Will the same fall in definition of 'Trading' .
Regards
Manoj Sharma
CENVAT Reversal for Real Estate: Rule 6 Clarifies Trading as Exempt Service with Specific Calculation Guidelines A query was raised regarding the calculation of the CENVAT reversal ratio under Rule 6 for exempted services in the real estate business, specifically whether the difference in value from the sale and purchase of plots, shops, and houses should be considered exempted services and fall under 'Trading.' The response clarified that if common services are used for both exempted and taxable goods/services without maintaining separate accounts, CENVAT credit must be reversed at 6% of the value of exempted goods/services. For trading, the reversal is based on the greater of the difference between sale price and cost of goods sold or 10% of the cost of goods sold. (AI Summary)
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