Input service on cost allocation between sister concern

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vivek (Querist)
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14 May 2012 Hi,
If service received by parent company and 50% of such service cost allocated to its sister concern then how much input service taken by parent co. and sister co
for example:- below Exp bear by Parent co
Professional Service Rs 100000
service tax Rs 10300

Allocate 50% cost to sister concern Rs 50000
so my question is whether parent co is takent cenvat Rs 5150 or 10300?

THANKS

Siju Joseph

Siju Joseph (Expert)
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14 May 2012 Hi,

Why don't you make this issue simpler by getting two bills for parent co. and sister concern separately?

Regads,

vivek

vivek (Querist)
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14 May 2012 Dear Siju ji,
thanks for this suggestion but right now service provider has raised only one bill so please suggest me for taking cenvat at above situtation.

THANKS

Siju Joseph

Siju Joseph (Expert)
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15 May 2012 Hi,
Suggestion 1
i don't think that you can take 50% credit in your sis co. since the bill is not addressed to ur sis co.

Suggestion 2

Get added your sis co.name at-least in the description of that bill with their seal and sign. So that Service Tax authority may not ineligible input credit by assuming this is a genuine case.

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