Cenvat Reversal Ratio U/R 6

[Manoj Sharma]

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

AI Summary

CENVAT reversal required where common services support exempted outputs; trading treated as margin or cost-based benchmark.
Where common input services are used for both taxable and exempted outputs and no separate accounts are maintained, the assessee must reverse CENVAT credit proportionate to the value of exempted goods or services, calculated at six percent of that value. For trading, taxable value is the greater of the difference between sale price and cost of goods sold determined by accepted accounting principles (excluding purchase expenses) or ten percent of the cost of goods sold.