VCES - CENVAT Credit and Trading - Am I eligible?
WE received this query from a Netizen,
I am a manufacturer availing CENVAT credit and discharging duty as per law. I have also indulged in trading (exempted Service). But, I didn't reverse the required amount under Rule 6(3) OR Rule 6(3A) of CENVAT Credit Rules, apparently as trading was mostly NOT considered as a Service by the Trade in general.
Can I avail VCES for the amount payable under Rule 6(3) or Rule 6(3A), as it is purely relatable to provision of Service of Trading and NOT to the manufacture of goods??
This does not seem to be covered under the VCES as it is not ‘tax dues' as defined in Section 105 of the Finance Act, but it richly deserves to be covered under the scheme as it relates to exempted service.
Will the Board/Revenue Secretary clarify?