https://www.taxtmi.com/article/detailed?id=5853 Restriction under Rule 6 prescribes three compliance options: separate accounting to apportion credit to taxable activity; pay the specified percentage in lieu of reversal; or calculate proportionate ineligibility under the rule's formula. Exclusively used capital goods and inputs qualify fully for credit when applied to taxable activity; those used for exempt activity do not. Common input services must be allocated by objective measures or by Rule 6(3). The rule lists specific inclusions for the exempt value pool and certain clear exclusions, while noting persistent drafting and interpretive ambiguities that cause disputes. en-us Wed, 01 Oct 2014 06:44:40 +0530 Wed, 01 Oct 2014 06:44:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5853 Restriction under Rule 6 prescribes three compliance options: separate accounting to apportion credit to taxable activity; pay the specified percentage in lieu of reversal; or calculate proportionate ineligibility under the rule's formula. Exclusively used capital goods and inputs qualify fully for credit when applied to taxable activity; those used for exempt activity do not. Common input services must be allocated by objective measures or by Rule 6(3). The rule lists specific inclusions for the exempt value pool and certain clear exclusions, while noting persistent drafting and interpretive ambiguities that cause disputes. Articles Service Tax Wed, 01 Oct 2014 06:44:40 +0530 https://www.taxtmi.com/article/detailed?id=5853