TaxTMI 
TaxTMI 
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
Claim of Input Credit
22 Oct 2008 
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Proportionate cenvat credit allocation required where input services support both taxable services and exempt trading activity.
Entitlement to cenvat credit for input services used for both taxable broking and exempt trading requires allocation by direct allocation and absorption on a reasonable basis so that credit is claimed proportionately; separate accounts permit coverage under the separate-accounts option, otherwise prescribed pooling/allocation procedures apply. Full credit is available for specified services and capital goods, while inputs and input services used exclusively for exempted activities are not eligible. (AI Summary)
Entitlement to cenvat credit for input services used for both taxable broking and exempt trading requires allocation by direct allocation and absorption on a reasonable basis so that credit is claimed proportionately; separate accounts permit coverage under the separate-accounts option, otherwise prescribed pooling/allocation procedures apply. Full credit is available for specified services and capital goods, while inputs and input services used exclusively for exempted activities are not eligible. (AI Summary)