CENVAT Credit

[Arti Gupta]

We have manufacturing units all over India.

We often come across these cases where invoices shall be in the name of one unit. Later on, the total costs including taxes & duties are debited to other units through inter division accounts.

 We seek first unit to get revised invoices of the parties to enable us to avail CENVAT. This has been hard for both of us (transferee and transferor) .

If one unit gives debit to second unit  with service tax/excise duty where invoice is in the name of other unit whether CENVAT is available to second unit.

 Please clarify the position.

[YAGAY andSUN]

Get the registration either under LTU (Transfer of CENVAT credit) or get the registration  under ISD (for service tax) or you should have Centralized Registration Certificate (for Service Tax).

 

[Arti Gupta]

Sir,

Each unit is registered separately with Excise Authority and they all provides output services. in that case If one unit gives debit to second unit  with service tax/excise duty where invoice is in the name of other unit whether CENVAT is available to second unit.

 Please clarify the position.

AI Summary

CENVAT credit eligibility when supplier invoices are in one unit but costs are debited to another hinges on registration and invoice alignment. Whether a manufacturing unit may avail CENVAT credit where supplier invoices are issued in the name of one unit but costs, including duties and service tax, are debited to another unit through inter division accounts; suggested compliance pathways include registration under a Large Taxpayer Unit for transfer of CENVAT credit, Input Service Distributor registration for service tax, or a Centralized Registration Certificate to permit centralized utilization or allocation of input credits.