Claim of Input Credit

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we are share brokers and do broking business and trading in own account. how do we claim credit for input services whre the output are taxable service as well as trading activity

AI Summary

Brokerage Firm Seeks Input Credit Guidance: Allocation, Proportional Claims, and Rule 6(5) for Certain Services Explained. A share brokerage firm inquires about claiming input credit for services used in both taxable services and trading activities. One response suggests using allocation principles to value input services for taxable services and claim credit accordingly. Another advises claiming Cenvat credit proportionately, with full credit available for certain services and capital goods. A third response explains that trading activities are exempt from service tax, and suggests maintaining separate accounts for taxable and exempted services, or opting for specific rules under Cenvat Credit Rules for claiming credit. Full credit is available for certain services as per rule 6(5).