For Input Service Distributors Registration - Reg.

[RAM SHARMA]

Dear Experts,

We have 3 units registered with seperate excise and service tax registration no. We have centralised bank of all the three units and want to take service tax credit on such bank charges. By doing this we have to take Input Distributors Registration. At this stage, what precaution and procedure to be taken for apply input distributors Registration. Please advice.

AI Summary

Input Service Distributor registration enables central distribution of service tax credit, subject to the one year invoice limit.
Registration as an Input Service Distributor allows a head office to centrally receive and distribute service tax credit to constituent units; applications must be filed online with hard copy submission while unit registrations continue. Distribution must allocate common credits by units' turnover ratio and assign unit-specific credits to the relevant unit. Credit can be availed only within the statutory temporal limit from the invoice date; credits beyond that period should be expensed or capitalised. Maintain reconciliation between cenvat/service tax records and books of account due to departmental scrutiny.