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Cenvat reversal

Service Tax - Started By: - Debtosh Dey - Dated:- 4-11-2015 Last Replied Date:- 9-11-2015 - If common input service is ₹ 1,00,000 which caters to taxable output service ₹ 75,000, traded goods ₹ 25,000 (cost ₹ 20,000) and exported goods ₹ 10,000 (cost ₹ 6,000), what is the input-output ratio for reversing Cenvat ? (I am not clear if exported goods should be taken into account for ratio though not for reversal, and if yes, on what value ?)Debtosh Dey - Reply By .....

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of Cenvat Credit Rules, you are not required to reverse the credit on the inputs, input service involved in the goods exported. There are a number of judgments on this issue. - Reply By Debtosh Dey - The Reply = I did mention that export goods do not attract but my question was whether any value of export goods is to be considered in the denominator for input-output ratio. Since common input is also used for exports, the ratio is bound to be unjustifiably higher if such value is not considered i .....

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, these can be treated as dutiable goods. So as per this option you are to pay 7% of the value of exempted services i.e. on trading goods. No exempted goods are involved. Hence no question of addition of 6 % of the value of exempted goods. It means only 7% of the value of traded goods is required to be paid. This has also been suggested by Sh.Ganeshan Kalyani. Now the question of second option under Rule 6 (3A) (i) (ii) of the CCR. As already explained in my reply dated 5.11.2015, the exported g .....

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