Regarding claim of input tax credit

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sanskar singhal (Querist)

21 April 2013 Dear Experts,
I have a query regarding claim of Input Tax Credit. My client have 2 offices Delhi(H.O) & Chennai. My client provide services from Chennai site (only Chennai office is Registered with ACES(CBEC)).
My question is whether we can claim Input tax credit paid on any service received in Delhi office ?
I also need your advice if we would register our Delhi office as centralized billing/accounting center, then can we claim Input tax credit paid for services received at Delhi Office..?

CA Vikas Acharya

CA Vikas Acharya (Expert)

23 April 2013 when you will get centralized registration the accoputoing/billing will be done at one place for all the services received and provided, hence credit can be taken in such case.
if you don't want centralised registration another option is to register your other office as input service distributor, but then you have to check rule 7 for conditions on availing the credit.
refer rule 2(m)and 2(l) of CENVAT CREDIT RULES, 2004 (amended after finance act 2012)

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sanskar singhal

sanskar singhal (Querist)

27 April 2013 Thanks Vikas jee, I have one more query, regarding claim of CENVAT Credit, If we received any service then Is there any requirement for direct nexus with taxable output service...??

sanskar singhal

sanskar singhal (Querist)

27 April 2013 Thanks Vikas jee, I have one more query, regarding claim of CENVAT Credit, If we received any service then Is there any requirement for direct nexus with taxable output service...??

CA Vikas Acharya

CA Vikas Acharya (Expert)

27 April 2013 direct nexus not mandatory, though must be used for providing output service.
before taking credit would be better if u will check rule 2(l) of cenvat credit rules.
if then any query u can ask