Selling time slot for advertisement on internet, Service Tax

[satbir singh wahi]

Selling time slot for advertisement on internet, if cenvat taken fully for other taxable service . Then 6 percent has to be paid for Selling time slot for advertisement on internet. Is this correct treatment.

Posts / Replies

[Ashish Chaudhary]

This is one of the option. Alternatively, you can maintain separate books of account showing the value of taxable as well non taxable service and can reverse the credit attributable to non taxable services. Another option is to reverse as per Formula provided under Rule 6(3A) of CCR by complying with the prescribed procedure. 

[Madhukar N Hiregange]

Since the credits may not be very high the 6 percent reversal option may not be economically viable/. The proportionate reversal method under 6(3) is preferable if possible.