TaxTMI 
TaxTMI 
Proportionate calculation
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....roportionate calculation<br> Query (Issue) Started By: - Vijay Chitte Dated:- 13-8-2007 Last Reply Date:- 14-8-2007 Service Tax<br>Got 1 Reply<br>Service Tax<br>Dear Friends, Please give your relevant....
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.... inputs on this query : we are manufacturing of dutiable and exempted products, we are availing a service of labour contractor, which is used in the manufacture of final products. Labour contractor mo....
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....nthly basis charged the bill with service tax for Rs.112360/- (100000 + 12360 service tax). Now question of taking a service tax credit for the above bill. For taking service tax credit, we have apply....
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.... the proportionate credit method like âĶi.e; We have collect the production data from our production department, like dutiable production qty 1,00,000 nos and Excisable production qty 50,000 nos, so ....
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....the total nos of production is 1,50,000 nos (1,00,000+50,000). We are applied proportionate formula like 50,000 (Excisable production qty) * 12360 (Service tax credit) / 1,50,000 (Total production qty....
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....) =4120 eligible service tax credit IS IT CORRECT WAY TO TAKE THE SERVICE TAX CREDIT? Reply By Surender Gupta: The Reply: This type of arrangements of availing proportionate cenvat credit has been ap....
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....proved by various judicial authorities. You just have to ensure, that the method used for finding out the proportionate credit is correct and acceptable.<br> Discussion Forum - Knowledge Sharing ....