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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 ..... Dear Experts, What is the difference between Rule 6(1) and Rule 6(3) of cenvat credit rule 2004 . Which rule is best for us if we are removing excisable goods and exempted services(Trading Goods) without keeping seperate record. Thanks - Reply By Rajagopalan Ranganathan - The Reply = Sir, Rule 6 (2) of Cenvat Credit Rules, 2004 provides that if your manufacturing dutiable exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sable 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 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing 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 services 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 decision about which method will be beneficial and not cumbersome to you, Experts writing in this column cannot decide which is the better op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 option is the better one. Sir, moreover how department will frame provision - one beneficial and other unfavourable. The main difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 both experts. - Difference between Rule 6(1) and Rule 6(3) - Query Started By: - RAM SHARMA Dated:- 6-8-2016 Service Tax - Got 3 R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eplies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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