TMI Blogrule 6, sub-rule (3) clause (ii)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, A Manufacturer of dutiable and exempted products maintaining separate accounts for input material and taking Cenvat credit accordingly but he can''t maintain separate account for input service. Manufacturer want's to follow rule 6, sub-rule (3) clause (ii) so can anyone explain this simply ( Do not copy as mention in manual because i can't understand) Someone said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me that if your last year ration is 85 : 15 ( 85 exempted sale and 15 Dutiable sale ) then you can take partial 15% credit of total input service for whole next year. please advise - Reply By KASTURI SETHI - The Reply = Sh.Mukesh Pareek Ji, You have two queries. Query-wise reply is as under:- 1. No doubt formula is not simple. You will have to resort to C.A.'s certificate for er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ror proof reversal under Rule 6(3) (ii) . Such certificate is subject to verification by the department. 2. Totally wrong. - Reply By Rajagopalan Ranganathan - The Reply = Sir Q.1: Rule 6 (30 (ii) of Cenvat Credit rules, 2004 mandates to pay an amount as determined under sub-rule (3A). Whether you like the provisions of rule 3A or not you have to follow it. Q.2: Reversing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e credit od input services used in exempted goodsiservices in the ratio indicated by you have no legal sanction. Even if you do so department will not accept it on the ground that it is beyond the scope of Cenvat Credit rules, 2004 and you have to undergo unnecessary and fruitless litigation. - Reply By KASTURI SETHI - The Reply = Agreed with Sh.Rajagopalan Ranganathan, Sir. - Reply By mukes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h pareek - The Reply = Dear Experts, Thanks for your valuable advise. Still i am looking forward for a simple formula / ratio to overcome from this issue. let me know if more data required from my side. Thanks in advance. - Reply By mukesh pareek - The Reply = Dear experts, Can we adopt below formula to take Cenvat credit of service tax on those service which used in manufacturing of exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted and dutiable goods. also please confirm that is it necessary to apply this from 1st April or we can apply in between year also ? 2015-2016 Particulars Amount Exempted Goods Sales 8500 Taxable Goods Sales 1500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Sales 10000 % of Exampted Sales 85% 2016-2017 Apr May June July ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Credit 5000 5000 5000 5000 Ineligible Credit 1000 1000 1000 1000 Eligible Credit 0 0 0 0 Common Credit 4000 4000 4000 4000 Ineligible Common Credit (85%) 3400 0 0 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Eligible Common Credit 600 4000 4000 4000 # 2015-2016 sales ratio is actual. # on base of 2015-2016 sales ratio assessee can reverse provisionaly in year 2016-2017 and difference can be paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before 30th June-2017. - rule 6, sub-rule (3) clause (ii) - Query Started By: - mukesh pareek Dated:- 17-5-2016 Central Excise - Got 5 Replies - Central Excise - 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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