Apportionment credit

This query is : Resolved

Rajkumar Gutti (Querist)
Follow

24 March 2025 If a common expenditure incurred like as security, house keeping, advertising.

Then is invoice demanded from out side vendor on Ho i. e ISD registered person. Is it correct, or any other else.

At the time of distributing input credit on service, is only input credit distribute or input credit plus service component charges both distribution to concern distinct person.

Please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

13 April 2025 Yes, it is correct that the invoice for common expenditures is typically demanded from an outside vendor by the head office (HO), which is the ISD-registered person. This is because the ISD mechanism allows the head office to receive invoices for services used across multiple branches and distribute the Input Tax Credit (ITC) accordingly.
The ISD distributes only the ITC related to the input services. The actual service charges or costs are not part of the ITC distribution. Instead, these costs are typically allocated based on the business's internal accounting policies or agreements between branches.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

30 September 2025 Good luck....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok