TMI BlogReversal of Cenvat credit under rule 6(3A) of Cenvat credit rules 2004 : 1/3X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Service Revenue as per P L a/c (Rs) Revenue on which Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Covered under Negative list as per section 66D of Finance Act 1994 CENVAT Credit availed on Common services ₹ 25,000 Formula for reversal of CENVAT credit on Common services Exempt Services provided ------------------------------------ X [ Cenvat Credit availed on Common (Exempt services provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed + 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] = ₹ 3,571 According to section 65B(51), taxable service means any servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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 ? - Reversal of Cenvat credit under rule 6(3A) of Cenvat credit rules 2004 : 1/3 - Query Started By: - satish kumar Dated:- 29-4-2016 Service Tax - Got 1 Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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