A SERVICE NOT COVERED IN DEFINITION OF ‘TAXABLE SERVICE’ IS AN EXEMPTED SERVICE UNDER CENVAT CREDIT RULES, 2004

A SERVICE NOT COVERED IN DEFINITION OF ‘TAXABLE SERVICE’ IS AN EXEMPTED SERVICE UNDER CENVAT CREDIT RULES, 2004 https://www.taxtmi.com/article/detailed?id=6794 Rule 3A provides an option to maintain separate accounts or follow a proportionate payment/reversal mechanism with written intimation and detailed procedures for payment, provisional payment and reversal. The Finance Act, 2010 amended the Rules to prescribe a remedial procedure for subsequent reversal but limited that mechanism to manufacturers. The Tribunal held that the 2010 amendment cannot be read to extend the remedial procedure to output service providers and that subsequent reversal does not cure noncompliance where Rule 3A's procedure is not applicable. The Tribunal further held that the definition of exempted service includes services to Jammu & Kashmir. en-us Sat, 23 Apr 2016 10:46:54 +0530 Sat, 23 Apr 2016 10:46:54 +0530 TaxTMI RSS Generator A SERVICE NOT COVERED IN DEFINITION OF ‘TAXABLE SERVICE’ IS AN EXEMPTED SERVICE UNDER CENVAT CREDIT RULES, 2004 https://www.taxtmi.com/article/detailed?id=6794 Rule 3A provides an option to maintain separate accounts or follow a proportionate payment/reversal mechanism with written intimation and detailed procedures for payment, provisional payment and reversal. The Finance Act, 2010 amended the Rules to prescribe a remedial procedure for subsequent reversal but limited that mechanism to manufacturers. The Tribunal held that the 2010 amendment cannot be read to extend the remedial procedure to output service providers and that subsequent reversal does not cure noncompliance where Rule 3A's procedure is not applicable. The Tribunal further held that the definition of exempted service includes services to Jammu & Kashmir. Articles Cenvat Credit Sat, 23 Apr 2016 10:46:54 +0530 https://www.taxtmi.com/article/detailed?id=6794