Cenvat credit exempted goods/services (Trading Export)

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..... Cenvat credit exempted goods/services (Trading Export)
Query (Issue) Started By: - RAM SHARMA Dated:- 28-7-2016 Last Reply Date:- 4-8-2016 Service Tax
Got 3 Replies
Service Tax
Dear Experts, We are manufacturer cum merchant exporter, we are doing manufacturing sale and trading sale in domestic market as well as export market. whether our trading export will be treated as exempted ser .....

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..... vice and cenvat to be reverse under rule 6(3) of cenvat credit rule 2004. Please advice. Thanks Reply By CS SANJAY MALHOTRA: The Reply: Trading is an exempted activity thus; no CENVAT credit is admissible in respect of input services which are exclusively used for merchant exports. On the other hand with regard to input services availed as common services, undertaken for both i.e. direct expor .....

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..... ts in capacity of manufacturer and as merchant exporter, the Input Tax Credit shall be reduced proportionately on the basis of turnover of each business vertical. Moreover, If Merchant Exporter is availing benefit of Duty Drawback in respect of exports, he's refunded duties of Customs, Excise & Service Tax and hence no other benefit is admissible. Reply By Ganeshan Kalyani: The Reply: Sir, I ag .....

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..... ree with the views submitted by Sri Sanjay Sir. Thanks. Reply By RAM SHARMA: The Reply: Dear Sir, It means our some services will pertain to common input services like Rent and Bank charges etc. Hence we will reverse 7% cenvat on trading goods. Pl suggest whether the above mention services will our common input. Thanks
Discussion Forum - Knowledge Sharing .....

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