Home Forum Central Excise Month 9 2019 2019 (9) This
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Cenvat Credit Reversal Rule 6 CCR 2004 - Central ExciseExtract Facts : 1) We have Purchases from - Import Purchase , Local Vat / Interstate purchase and Excise purchase, 2) Sales - Local Sales and Excise sales, 3) We have availed Cenvat credit on Input Services received. 4) We have not maintained separate books of accounts for Dutiable and Exempted Goods Query : 1) Weather local sales would be considered as exempted sales for reversal calculation. 2) Department is asking for reversal of Cenvat credit on Input Services received on proportionate basis of Exempted sales / Total Sales, 3) Weather the other option under Rule 6(3)(i) of CCR 2004 (7%/8%) of Exempted Service if selected can be beneficial. 4) I have read that 10% of trading activity is to be considered as exempt The Calculation of reversal on proportionate basis is attached for your reference. Kindly guide which would be beneficial Option P L turnover (A) ER-1 turnover (B) Exempted (C) (A-B) ST Credit for the year (D) 'Proportionate 6(3) reversal (E) (D*C/A) 1 - 100% Trading Activity as Exempt 16066364 777014 15289350 14149 13465 2 - 10% Trading Activity as Exempt 16066364 777014 1528935 14149 1346
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