9911796707
TMI BlogExempted Goods / Services - Reversal of Cenvat CreditX X X X Extracts X X X X X X X X Extracts X X X X ..... goods / taxable services shall be allowed. · Credit on input or input services which are utilized exclusively in exempted goods / exempted services shall not be allowed. · Credit on input or input services which are utilized in both exempted and non -exempted goods or services shall not be allowed. However Cenvat Credit on these shall be allowed with in the provisions of rule 6(2) i.e. by maintaining separate books of accounts. However, Cenvat credit on input shall be allowed to a job worker referred to in rule 12AA (in case of jewellelry & other article of precious metal) shall be allowed even if manufactured goods cleared without payment of duty. Here exempted goods or final product includes non -excisable goods cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) Option to maintain separate accounts for the receipt, consumption and inventory of inputs as provided for in clause (a) of sub-rule (2), take CENVAT credit only on inputs under sub clauses (ii) and (iv) of said clause (a) and pay an amount as determined under sub-rule (3A) in respect of input services. The provisions of sub-clauses (i) and (ii) of clause (b) and sub clauses (i) and (ii) of clause (c) of sub-rule (3A) shall not apply for such payment. Important points: * Any assessee who wants to opt, any of the above clauses, need to be opt for all exempted goods or all exempted services. Once assessee chooses any option, it will be continue for the rest of the year. * Cenvat credit can be availed only on Inputs or input services co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alculated at the year end, assessee can adjust the difference amount himself by taking credit. Only intimation to superintendent is required in 15 days of such payment or adjustment. In case of first year of production or provision of services, calculation will be made after the year is over as no data of last year will be available. Based on year end calculation, an amount attributable to Cenvat credit on exempted final products and exempted services will be calculated and paid. Such amount is required to be paid before 30th june of the succeeding financial year. Scope of Rule 6(4) Rule 6(4) deals with the Cenvat Credit on Capital Goods, whereas rule 6(1), 6(2) and 6(3) deals with the Credit on input and input services only. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onvertible foreign currency; and - -such payment has not been received for a period of six months or such extended period as maybe allowed from time-to-time by the Reserve Bank of India, from the date of provision. - Thus, provision of proportionate reversal or payment of amount under rule 6 of Cenvat credit rule will be required if export is not defined in Rule 6A of Service Tax Rules or payment in foreign exchange is not received within period allowed by RBI. - In case of such payment is received after the specified or extended period but within one year from such period, the service provider shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier, on the basis of documentary evidence of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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