TaxTMI 
TaxTMI 
Our HO transfer all cenvat credit to Factory by a Debit note at the end of month as it has taken ISD registration.
Question : Can we claim credit on Rent or Electricity payment of HO in our ER /ST3 return?
Availability of Cenvat credit
19 Jan 2017 
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Cenvat credit entitlement: head office rent and electricity transferable to factory when nexus and compliant documentation exist.
Cenvat credit for HO rent and electricity is claimable at the factory if there is nexus with output and proper distribution through the Input Service Distribution mechanism. Although invoices, bills or challans are prescribed, some decisions permit distribution on debit notes that contain all invoice ingredients; Rule 9(g) requires debit notes to be supported by an invoice/bill/challan. Proper documentation and the invoice address determine whether the factory can avail the credit, and routine reliance on unsupported debit notes is not recommended. (AI Summary)
Cenvat credit for HO rent and electricity is claimable at the factory if there is nexus with output and proper distribution through the Input Service Distribution mechanism. Although invoices, bills or challans are prescribed, some decisions permit distribution on debit notes that contain all invoice ingredients; Rule 9(g) requires debit notes to be supported by an invoice/bill/challan. Proper documentation and the invoice address determine whether the factory can avail the credit, and routine reliance on unsupported debit notes is not recommended. (AI Summary)