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TMI BlogDifference between Rule 6(1) and Rule 6(3)X X X X Extracts X X X X X X X X Extracts X X X X ..... Difference between Rule 6(1) and Rule 6(3) X X X X Extracts X X X X X X X X Extracts X X X X ..... cord. Thanks Reply By Rajagopalan Ranganathan: The Reply: Sir, Rule 6 (2) of Cenvat Credit Rules, 2004 provides that if your manufacturing dutiable excisable and exempted excisable goods or you are providing taxable service and exempted service and you are availing credit of duty paid on inputs and service tax paid on input services and you are not maintaining separate inventory of inputs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input service in respect of dutiable excisable goods and exempted excisable goods or taxable services and exempted services then you can follow any of the following options: - (i) pay an amount equal to six per cent. of value of the exempted goods and seven per cent. of value of the exempted services subject to a maximum of the sum total of opening balance of the credit of input and input service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s available at the beginning of the period to which the payment relates and the credit of input and input services taken during that period; or; (ii) pay an amount as determined under sub-rule (3A). Sub-rule 3A provides a formula by which you have to calculate the amount of credit utilised for manufacture of exempted excisable goods and/or for providing exempted service. It is for you to take a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision about which method will be beneficial and not cumbersome to you, Experts writing in this column cannot decide which is the better option without any data made available to us. You may engage a local consultant/Charted Accountant for this job. Reply By Ganeshan Kalyani: The Reply: Sir, Sri Rajagopalan Sir, has rightly mentioned that 'without studying the data nobody can say which op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is the better one. Sir, moreover how department will frame provision - one beneficial and other unfavourable. The main difference is the option for an assessee to maintain books of account and in other option it is not required. Sir, you may contact experts in this forum, who would help you out with nominal fees. Thanks. Reply By KASTURI SETHI: The Reply: I strongly support the views of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both experts. X X X X Extracts X X X X X X X X Extracts X X X X
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