Discussions Forum | ||||||||||
Home Forum Service Tax This
A Public Forum.
Submit new Issue / Query
My Issues
My Replies
|
||||||||||
CENVAT CREDIT -HOSPITALS, Service Tax |
||||||||||
|
||||||||||
CENVAT CREDIT -HOSPITALS |
||||||||||
Thanks Posts / Replies Showing Replies 1 to 5 of 5 Records Page: 1
Dear Sir, Excise duty can be taken as credit if the capital goods come under the definition of Rule 2(a) of CENVAT Credit Rules, 2004. Service taxes paid to various activities can be availed if the same are utilised for providing output service and related to the business activities as deflined in Rule 2(l) of the CENVAT Credit Rules, 2004. If you are able to main separate cost records for taxable services and non taxable services you can avail the credit fully or you may choose option under Rule 6(3) of CENVAT credit Rules, 2004 and pay tax as per the formula and you can avail full credit. Regards, M. GOVINDARAJAN 9486103193
would appreciate exhaustive and pointwise reply. Which are the hospitals which are availing above credits.
It seems that you are rending both taxable and non taxable services. You can avail the cenvat credit on inputs/inputs services and 50% of duty in respect of capital goods in the year of receipt and balance in the following year subject to Rule 6 of Cenvat Credit Rules, 2004. As per the Rule you have to maintain the separate sets of books of accounts regarding the procurement and utilization of services for taxable and non taxable services. If not then either pay the duty equivalent to 5% of the value of exemted services or pay an amount equivalent of cenvat credit availed on the exempted goods.
We think 6% incase of exempted services and 5% in case of exempted goods. Is It ?
Excise Duty cenvat credit can be taken on capital goods, namely 50% in the first year and the balance in subsequent years. The extent of taxable versus non taxable turnover is not of any importance. Either separate records have to be maintained to avail Cenvat credit or 6% to be paid on exempted services and 5% on exempted goods to avail full cenvat Page: 1 Old Query - New Comments are closed. |
||||||||||