TaxTMI 
TaxTMI 
Reversal of Cenvat credit under rule 6(3A) of Cenvat credit rules 2004 : 1/3
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....eversal of Cenvat credit under rule 6(3A) of Cenvat credit rules 2004 : 1/3<br> Query (Issue) Started By: - satish kumar Dated:- 29-4-2016 Last Reply Date:- 1-5-2016 Service Tax<br>Got 1 Reply<br>Service Tax<br>Assessee 'A' provides following services: * Taxable Service - Hotel accommodation service 'A' pays service tax @ 60% of amount billed/ received from customers after availing abatement of....
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.... 40% * Exempt Service - Interest from bank 'A' receives interest from bank on fixed deposits 'A' avails CENVAT credit on common services used for providing abovementioned taxable and exempt services. Hence, 'A' needs to reverse proportionate CENVAT credit attributable to provision of exempt services under rule 6(3A) of CENVAT credit rules 2004. Option 1 Option 2 Particulars Description of ....
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....Service Revenue as per P&L a/c (Rs) Revenue on which Service tax is paid (Rs) Remarks Taxable Service Hotel accommodation service 1,00,000 60,000 Service tax is paid on 60% as per provisions of Notification 26/2012 Exempt Service Interest on fixed deposit 10,000 10,000 Covered under Negative list as per section 66D of Finance Act 1994 CENVAT Credit availed on Common services ͅ....
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....7; 25,000 Formula for reversal of CENVAT credit on Common services Exempt Services provided ------------------------------------ X [ Cenvat Credit availed on Common (Exempt services provided + Services ] Taxable services provided) Cenvat credit to be reversed 10,000 ----------- X 25,000 [10,000 + 1,00,000] = ₹ 2,273 10,000 ----------- X 25,000 [10,000 + 60,000] = ₹ 3,57....
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....1 According to section 65B(51), "taxable service" means any service on which service tax is leviable under section 66B Which option is correct and why ? Reply By Ganeshan Kalyani: The Reply: Sir please clarify how interest received on fixed deposit will amount to service provided by you ?<br> Discussion Forum - Knowledge Sharing ....