Input Service distributor- Distribution

[Asked by Guest]

Dear Sir,

Our Head office is registered as Input Service distributor having different address and we has many depots and factories having different address, So if the Input service bill is received to us under our depot or factory address. So we as a head office can distribute Input service tax credit to our relevant Factories, If yes please explain, pls give any references regarding this,thanks and regards.

AI Summary

Input service credit distribution: pro rata turnover allocation governs who may receive and use distributed credits.
Input service tax credit held by an Input Service Distributor may be distributed to manufacturing or output-service units but subject to limits: distribution not to exceed tax on the supporting document; no distribution of credit attributable to services used exclusively for exempted activities; single-unit use credit goes only to that unit; multi-unit use credit must be apportioned pro rata by turnover of operational units for the relevant period. "Unit" includes premises of a provider of output service and manufacturer, and the relevant period is the preceding financial year or, if unavailable, the last quarter with complete turnover details. Credits billed to a specific depot or factory can be availed by that site and are not freely distributable by the head office.