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Chirayu Kothi (Querist)
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23 January 2009 What is the provisions for taking credit for Input Service Distributor for input services? and What proportion?

Any of branch can utilize all credit or must pass to other branches?

CA Amarpal

CA Amarpal (Expert)
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24 January 2009 Dear Chirayu,

As per the given facts, Input Service Distritor is the office of the manufacturer or service provider who receives invoices and avails the credit on such input services and pass to the such manufacturer or service providers.

The input service distributor can distribute the availed credit in any proportion but subject to the following conditions:-

1. The credit distributed does not exceed the amount of service tax paid on input services.

2. credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed.

with best wishes
amarpal@icai.org

Chirayu Kothi

Chirayu Kothi (Querist)
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24 January 2009 ISD can avail 100% credit at where the invoice received and payment made?

Any supporting case laws?