Credit of Service tax, Service Tax

[CA. R.K.Aggarwal]

In view of notification no.10/2008 dt 1-3-08,restiction of 20% on use of CENVAT credit goes away (wef. 01-04-08), now either pay 8% 0f exempted service or revese the credit attributable to exempted service. In this case, are we still entitled to claim full credit of 16 services given in sub-rule(5) of rule 6 of e Cenvat Credit Rule.

Posts / Replies

[V.Ramanujam]

I am of the view so long as the rule is in the statute book and there is no express restrictions in the provisions, one can continue to avail full credit of 16 specified services as per rule 6(5) even after 1.4.2008.