Input tax credit availability

[Sethuraman Kalyan]

One of our clients , a sole proprietor, having two TIN registrations is carrying on business as earth movers and contractors and also as pre mixed concrete manufacturer.

He has purchased materials for building such as cement,stones etc using the TIN of business-1(ie., erath moving and construction contracts) and transferred the material to business-2. Can the input credit in business-1 be availed in business-2. Both businesses having two different TINs.

Please clarify.

Thanks in advance.

AI Summary

Input tax credit between separate TIN registrations barred; transfer goods by tax invoice to preserve correct ITC allocation.
The Sales Tax Department treats separately registered businesses under different TINs as distinct taxable persons, so input tax credit belonging to one registration cannot be availed by another. To align entitlement and documentation, goods should be transferred between registrations by issuing a tax invoice for the inter-registration transfer; this permits the transferor to claim its ITC and the transferee to record taxable acquisition, while avoiding cross-registration appropriation of ITC.