Cenvat Reversal Ratio U/R 6, Service Tax

[Manoj Sharma]

Sir,

We have business of Real Estate ( sale purchase of plots/shops etc and constructin house & sale etc) and have commercial units from which We receive Rental / Maint.

My Query is while calculating ratio for reversal of CENVAT U/R 6 for exempted service , should we require to add diffrence of value of sale purchase of above said plots/shops & house as exempted service ?

 Will the same fall in definition of "Trading" .

Regards

Manoj Sharma

Posts / Replies

[ANAND SHEMBEKAR]

If you are using common services for both exempted goods / serices and taxable goods / services , and also taking cenvat credit on services and not maintaining separate accounts of input services utilised for output services then  you are required to reverse the cenvat credit taken on input services / goods  . The reversals would be 6% of value of exempted goods / services .
 

 in case of trading, shall be the difference between the sale price and the cost of goods sold (determined as per the generally accepted accounting principles without including the expenses incurred towards their purchase) or ten per cent of the cost of goods sold, whichever is more.

Thanks

A M SHEMBEKAR

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