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TMI BlogProportionate calculationX X X X Extracts X X X X X X X X Extracts X X X X ..... Proportionate calculation X X X X Extracts X X X X X X X X Extracts X X X X ..... t inputs on this query : we are manufacturing of dutiable and exempted products, we are availing a service of labour contractor, which is used in the manufacture of final products. Labour contractor m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onthly basis charged the bill with service tax for Rs.112360/- (100000 + 12360 service tax). Now question of taking a service tax credit for the above bill. For taking service tax credit, we have appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the proportionate credit method like …i.e; We have collect the production data from our production department, like dutiable production qty 1,00,000 nos and Excisable production qty 50,000 nos, so t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total nos of production is 1,50,000 nos (1,00,000+50,000). We are applied proportionate formula like 50,000 (Excisable production qty) * 12360 (Service tax credit) / 1,50,000 (Total production qty) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... =4120 eligible service tax credit IS IT CORRECT WAY TO TAKE THE SERVICE TAX CREDIT? Reply By Surender Gupta: The Reply: This type of arrangements of availing proportionate cenvat credit has been app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roved by various judicial authorities. You just have to ensure, that the method used for finding out the proportionate credit is correct and acceptable. X X X X Extracts X X X X X X X X Extracts X X X X
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