Please Help: CENVAT
Posted Date : 16-Aug-2011 , 04:12:00 pm | Posted By: KALAIKOVAN
Category :
Service Tax | Answers :
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Comments :
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A trader (Watches and accessories) provide a taxable service (Business Auxillury Service).
Can they take CENVAT Credit on Rent payment for Showroom?
Trading Turnover is apx 90%
Taxable Serice is apx 10 |
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| Comments |
| Posted By : CA VIPIN GARG |
16-Aug-2011, 04:53:59 |
| Yes definitely, you have to reduce the cenvat credit attributable to the trading activities...... |
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| Posted By : KALAIKOVAN |
16-Aug-2011, 04:45:22 |
| Rent paid for the show room is common input for Trading (Non-Service Activities) and Taxable Service (Repair). Whether the portion of credit attributable to Trading activities needs to be reduced from CENVAT Credit?
Thank you very much |
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| Posted By : CA VIPIN GARG |
16-Aug-2011, 04:38:21 |
| Yes you can take but needs to be very carefull because you should seperate your service centre in side corner and book the rent seperately of taxable service and trading activities on the basis of area occupied, otherwise you may find some difficulty if any service tax inspector visited your shop or somebody pointed out this thing to the department........
Hopefully you got the answer you are looking for my dear......
Have a nice day.. |
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| Posted By : Ashish Karundia |
16-Aug-2011, 04:17:07 |
| Yes, the CENVAT Credit of service tax paid on rent of teh showroom can be taken by following the procedure set out in Rule 6 (2) [ maintaining separate books of accounts ) or Rule 6 (3)[ not maintaining separate books of accounts ] of Cenvat Credit Rules, 2004.
In case of any problem, please let me know. |
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