Cenvat Rules - Commercial Coaching & training

[satbir singhwahi]

Sir Can u explain by way of example the new cenvat rules for Commercial Coaching & training Company which renders both taxable and exempted services and no seperate record is kept for input services as to taxable & exempted services.Also clarify whether TOEFL & IELTS cources are exempt under vocational services in respect of forign language cources. Satbir Singh Wahi Fca 09143-31105 [email protected]

[Guest]

As per the amended CENVAT Rules, in the absence of separate records, the service provider providing both taxable/exempted service is to either pay 8% on value of exempted service render or to reverse the CENVAT Credit relatable to inputs/input services used in providing the exempted service (as per formula prescribed). Thus, if render any vocational course, either you have to pay 8% on its income or to reverse the CENVAT on input service relatable to providing of such course. But I feel TOEFL/IELTS course may not come within the term 'vocational course' which may be examined.

AI Summary

Cenvat compliance requires either payment on exempt service value or reversal of input credit when records are absent. Where a service provider renders both taxable and exempt services and keeps no separate records, it must either make the prescribed payment on the value of exempted services or reverse the Cenvat credit attributable to inputs and input services used for those exempted services under the prescribed formula; classification of specific courses (e.g., whether they are 'vocational courses') determines whether the exemption-linked payment or reversal obligation applies.